UK FCA raids eight London sites linked to suspected illegal P2P crypto trading

The UK's Financial Conduct Authority (FCA) has raided eight suspected illegal peer-to-peer (P2P) cryptocurrency trading locations in London, acting alongside tax and police authorities, Reuters reported on April 22, as cited by CoinDesk. The watchdog also issued cease-and-desist orders to the parties involved. The operation is the FCA's first multi-agency coordinated enforcement action. The regulator said evidence collected during the raids has fed into multiple criminal investigations, with scrutiny on potential money laundering and terrorist financing. Regulators warned that unregistered P2P crypto trading can be used to move and disguise illicit funds. The FCA noted that there are currently no P2P cryptocurrency traders registered with the agency in the UK. Market participants view the raids as a shift from guidance and policy messaging toward enforcement, and expect further crackdowns. Under the current regime, crypto assets in the UK remain classified as high-risk investments and are mainly overseen through anti-money laundering requirements and financial promotion rules.