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The United Kingdom’s Financial Conduct Authority has disrupted suspected illegal peer-to-peer crypto trading across several London sites. The action targeted eight entities in a joint operation with HMRC and SWROCU. The FCA said the move marks its first multi-location action against unregistered P2P digital asset traders.
The FCA said it issued cease-and-desist letters to eight suspected entities on April 22. Officers delivered the letters at each site at the same time.
The letters ordered the traders to stop the suspected illegal activity immediately. The FCA said evidence gathered during the visits now supports several criminal investigations.
HM Revenue and Customs and the South West Regional Organised Crime Unit joined the operation. Together, the agencies focused on activity linked to financial crime risks.
Peer-to-peer trading lets people buy and sell digital assets directly with each other. It does not use a centralized exchange as the main route.
The FCA said the action does not target ordinary people who make occasional trades. Casual buying, selling, or direct trading generally does not require FCA registration.
In the UK, people who trade “by way of business” must register with the FCA. This includes regular brokers, dealers, P2P trading groups, or traders earning fees.
The UK still awaits a full digital asset framework. The report says officials expect final rules this summer, with implementation set for October 25, 2027.
For now, crypto businesses must follow the FCA’s financial promotions regime and the 2017 Money Laundering Regulations. These rules govern marketing and AML/CFT duties.
Under the MLRs, crypto firms operating as a business must register with the FCA. They must also conduct customer checks, monitor transactions, and report suspicious activity.
The FCA said no registered peer-to-peer crypto traders or platforms currently operate in the UK. It said the targeted actors operated illegally.
“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk,” said Steve Smart, FCA enforcement and market oversight director.
Detective Inspector Ross Flay of SWROCU said law enforcement wants to stop traders from helping criminals move, hide, and spend illegal money.
The FCA has acted against other unregistered crypto activity before. In 2024, it disrupted illegal crypto ATMs and supported the prosecution of one person.
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In another 2024 case, the FCA worked with the Metropolitan Police Service. Officers arrested two people suspected of running an illegal digital asset exchange.
Legal specialists described the latest action as part of the FCA’s continued focus on crypto financial crime. Imogen Makin of WilmerHale said the operation showed regulatory action beyond statements.
Thomas Cattee of Gherson Solicitors LLP said the case showed a proactive push against unregistered crypto-asset activity. He also called it the FCA’s first specific focus on unregistered P2P crypto trading.
The FCA’s first multi-location action against illegal crypto P2P traders shows tighter enforcement around unregistered digital asset activity in the UK. With HMRC and SWROCU involved, the crackdown also points to growing pressure on traders operating outside AML rules and FCA registration requirements.
