The UK’s Financial Conduct Authority (FCA) has carried out its first coordinated crackdown on illegal peer-to-peer cryptocurrency trading, targeting eight sites across London in a joint operation with His Majesty’s Revenue & Customs (HMRC) and the South West Regional Organized Crime Unit (SWROCU).
Authorities issued cease and desist notices to each site and gathered evidence that is now fueling several criminal investigations, according to the FCA.
The FCA said the sites were suspected of facilitating peer-to-peer (P2P) cryptocurrency trading, in which individuals buy and sell cryptocurrencies directly from each other, without the required registration or anti-money laundering controls.
Under UK law, anyone operating as a crypto exchange provider must register with the FCA. The regulator has confirmed that there are currently no registered peer-to-peer crypto traders or platforms in the country.
“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a risk of financial crime,” said Steve Smart, FCA executive director of enforcement and market supervision.
Law enforcement billed the operation as part of efforts to cut off routes used to move illicit funds. SWROCU’s DI Ross Flay said unregistered traders can allow criminals to “move, disguise and spend illegal money”.
The action builds on previous enforcement actions. The FCA has been pursuing illegal crypto ATM operators for several years and has worked with police to arrest people linked to an unregistered crypto exchange in 2024.
Last year, it also took action against offshore platform HTX for illegal financial promotions and expanded surveillance of social media personalities promoting high-risk crypto products.
The crackdown comes as the UK prepares to roll out a broader regulatory regime for crypto by October 2027, with a licensing window expected to open in September 2026. The current framework primarily focuses on anti-money laundering compliance and financial promotions.
The FCA has urged consumers to check whether firms are registered using its online register. It also warned that users dealing with unregistered P2P traders do not have access to the financial ombudsman service or compensation schemes and may face risks if transactions involve stolen funds.
