The Financial Conduct Authority (FCA) has carried out its first coordinated operation targeting illegal peer-to-peer crypto trading, marking a significant enforcement step against unregistered digital asset activity in the UK.
In a joint effort with HM Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), authorities inspected 8 locations across London, suspected of facilitating peer-to-peer crypto transactions.
The agency ceased and desisted notices on-site, ordering traders to immediately halt illegal operations, while evidence collected to support ongoing criminal investigations.
Targeting unregistered crypto activity
Peer-to-peer crypto trading allows individuals to transact directly without using centralized exchanges, but in the UK, such activity requires proper registration.
According to the FCA, there are currently no registered peer-to-peer crypto traders or platforms operating legally in the country.
This latest operation reflects growing concerns among regulators that such channels may be used to bypass anti-money laundering safeguards.
“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk,” said Steve Smart, Executive Director of Enforcement and Market Oversight at the FCA. “We will use our powers and work with partners to disrupt them.”
He also urged consumers to remain cautious, adding that individuals should only engage with FCA-registered firms and be aware that crypto remains a high-risk investment.
Officials highlighted that illegal crypto trading can provide pathways for money laundering and other financial crimes.
“By working with our colleagues at the FCA and HMRC, we are able to effectively target and disrupt unregistered peer-to-peer crypto traders,” said DI Ross Flay of SWROCU. “We want to stop these traders from providing a route for criminals to move, disguise, and spend illegal money.”
Crackdown on illegal crypto activities
The latest operation builds on previous enforcement actions by the FCA, including cases involving illegal crypto ATMs and unregistered exchanges. In June 2024, the regulator worked with the Metropolitan Police to arrest two individuals linked to an illicit cryptoasset exchange.
The UK government’s risk assessments have repeatedly flagged cryptoassets as an emerging channel for money laundering and terrorist financing, prompting closer scrutiny and coordinated enforcement efforts.
The FCA continues to work with domestic and international partners to combat financial crime and ensure consumer protection in the evolving digital asset space.
Earlier this month, the FCA opened a public consultation on new crypto rules covering stablecoins, trading, and custody. The framework will require fresh approvals, with applications expected to open in 2026 ahead of a broader rollout in 2027.
The latest action reflects the UK’s tightening stance on crypto, combining enforcement with clearer regulation as the sector evolves.
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