The UK Financial Conduct Authority (FCA) has carried out its first coordinated action against illegal peer-to-peer crypto trading across London, working with other agencies and targeting eight locations.
The operation involved cease-and-desist notices and ongoing investigations into suspected unregistered trading activity. Authorities said the action supports ongoing financial crime investigations.
The FCA worked with HM Revenue and Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU). Officers targeted eight London addresses linked to suspected peer-to-peer crypto trading.
Each site received cease-and-desist notices during the same operation conducted on April 22. Evidence collected during inspections now supports several ongoing criminal investigations.
Peer-to-peer crypto trading involves direct digital asset transactions between individuals without a central exchange. Regulators noted that casual trading by individuals is not normally subject to registration rules. However, repeated activity carried out as a business, such as acting as a broker or earning fees from transactions, falls under regulated activity requiring authorisation.
Under UK regulations, cryptoasset service providers operating as a business must register with the FCA. These firms must follow anti-money laundering and counter-terrorism financing rules under the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017.
The FCA also applies financial promotion rules that control how crypto services are advertised to UK consumers.
The FCA confirmed that no peer-to-peer crypto trading platforms are currently registered 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, executive director of enforcement and market oversight. He added, “We will use our powers and work with partners to disrupt them.”
The FCA has previously acted against illegal crypto ATM operators and worked with police on cases involving unregistered exchanges in 2024. It has also taken steps against firms linked to unlawful financial promotions. Authorities continue to focus on reducing channels used for illicit financial activity in digital assets across multiple cases.
The UK is preparing a broader crypto regulatory framework expected in coming years, with full implementation scheduled for October 2027 and licensing arrangements expected from September 2026.
The FCA advises users to check its official register before engaging with crypto firms. Detective Inspector Ross Flay of SWROCU stated, “As law enforcement, we want to stop these traders from providing a route for criminals to move, disguise and spend illegal money.”