The U.K.’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 Organised Crime Unit (SWROCU).
Officials issued cease-and-desist notices at each site and gathered evidence that is now feeding into several 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 one another, without the required registration or anti-money laundering controls.
Under U.K. law, anyone operating as a crypto exchange provider must register with the FCA. The regulator confirmed there are currently no registered peer-to-peer crypto traders or platforms in the country.
“Unregistered peer-to-peer crypto traders operating in the U.K. 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, disguise and spend illegal money.”
The action builds on earlier enforcement steps. The FCA has prosecuted operators of illegal crypto ATMs for several years and worked with police to arrest individuals linked to an unregistered crypto exchange in 2024.
Last year, it also took action against offshore platform HTX over unlawful financial promotions and expanded oversight 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 compliance and financial promotions.
The FCA urged consumers to check whether firms are registered using its online register. It also warned that users dealing with unregistered P2P traders lack access to the Financial Ombudsman Service or compensation schemes and may face risks if transactions involve stolen funds.
