FCA Mounts First Coordinated London Crackdown on Illegal Peer-to-Peer Crypto Trading

The UK's Financial Conduct Authority (FCA) has carried out its first coordinated operation to disrupt illegal peer-to-peer crypto trading, conducting enforcement activity across multiple locations in London. Working alongside HM Revenue & Customs and the South West Regional Organised Crime Unit, the regulator inspected eight premises suspected of running unregistered crypto trading services. Officers issued cease-and-desist notices at each site and gathered evidence to support ongoing criminal investigations. The FCA said anyone offering peer-to-peer crypto trading services in the UK must be registered under anti-money laundering rules. It added that no such traders or platforms are currently authorised to operate in the country. Officials warned that unregistered activity exposes consumers to harm and can be used to move and disguise illicit funds. Law enforcement partners said the operation is designed to disrupt networks that may facilitate money laundering and other financial crimes. The action comes shortly after the FCA set out the scope and timetable for the UK's forthcoming crypto regulatory framework, which is expected to be fully in place by 2027. Under the proposed regime, firms involved in trading, custody and stablecoin issuance would need authorisation, with applications due to open in 2026. Cryptoassets in the UK remain largely outside direct regulation, with current oversight focused mainly on financial promotions and anti-money laundering compliance. The FCA said it will continue working with domestic and international partners to tackle financial crime and urged consumers to verify whether a firm is authorised before using crypto services.