The UK’s Financial Conduct Authority (FCA) has carried out its first coordinated crackdown on illegal peer-to-peer crypto trading, targeting eight locations across London in a joint operation with His Majesty’s Revenue & Customs (HMRC) and the South West Regional Organized Crime Unit (SWROCU).
Officers issued cease-and-desist notices at each location and collected evidence that is now part of multiple criminal investigations, according to the FCA.
The FCA stated that the sites were suspected of facilitating peer-to-peer (P2P) crypto trading, where individuals buy and sell crypto directly with each other without the required registration or anti-money laundering controls.
Under UK law, anyone operating as a crypto exchange provider must register with the FCA. The regulator confirmed that there are currently no registered peer-to-peer crypto traders or platforms in the country.
“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk,” said Steve Smart, the FCA’s executive director of enforcement and market oversight.
Law enforcement agencies framed the operation as part of efforts to cut off routes used to move illicit funds. DI Ross Flay of SWROCU said unregistered traders can enable criminals to “move, hide and spend illicit money.”
The action builds on previous enforcement steps. The FCA has been prosecuting operators of illegal crypto ATMs for several years and working with the police to arrest people linked to an unregistered crypto exchange in 2024.
Last year, it also took action against offshore platform HTX over illegal financial campaigns and expanded monitoring of social media figures promoting high-risk crypto products.
The crackdown comes as the UK prepares to roll out a broader regulatory regime for crypto by October 2027, with a licensing window expected to open in September 2026. The current framework focuses mainly on anti-money laundering and financial campaign compliance.
The FCA urged consumers to check whether businesses are registered using their online register. It also warned that users trading with unregistered P2P traders lack access to the Financial Ombudsman Service or compensation schemes and may face risks if transactions involve stolen funds.
