The Financial Conduct Authority (FCA) has spearheaded a landmark enforcement operation targeting illegal peer-to-peer crypto trading across multiple locations in London. In a coordinated effort with HMRC and the Regional Organised Crime Unit, authorities raided eight premises suspected of facilitating unregistered crypto transactions.
First Major Crackdown on Unregistered Crypto Activity
This marks the first time the FCA has conducted such a widespread crackdown on illegal crypto trading in the capital. At each site, traders were served with cease-and-desist letters, demanding an immediate halt to all activities deemed unlawful by the regulator.
The evidence gathered during these on-site inspections is reported to bolster several ongoing criminal investigations. Peer-to-peer trading involves individuals buying and selling cryptocurrencies directly with one another, bypassing centralised exchanges. Currently, there are no FCA-registered peer-to-peer crypto traders operating in the United Kingdom.
Strong Statements from Enforcement Officials
Steve Smart, the FCA's executive director of enforcement and market oversight, emphasised the seriousness of the situation. 'Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a significant financial crime risk,' he stated. 'We will continue to utilise our full range of powers and collaborate with partner agencies to disrupt these illegal operations.'
Detective Inspector Ross Flay of the South West Regional Organised Crime Unit highlighted the collaborative nature of the operation. 'By working closely with our colleagues at the FCA and HMRC, we can effectively target and disrupt these unregistered traders who are operating outside the law,' he explained. 'Our goal as law enforcement is to prevent these platforms from being used by criminals to move, disguise, and spend illicit funds.'
Regulator's Intensified Focus on Cryptocurrency
The FCA has been implementing a rigorous, phased regulatory framework designed to curb illegal crypto activity. This proactive stance comes as the UK prepares for the formal regulation of cryptocurrencies, scheduled to commence in October 2027.
The watchdog has a history of taking decisive action against unregistered cryptoasset activities. Previous measures include:
- Prosecuting an individual responsible for operating an illegal network of crypto ATMs across the country.
- Collaborating with the Metropolitan Police in June 2024 to arrest two suspects allegedly running an illegal cryptoasset exchange, through which over £1 billion in unregistered cryptoassets are believed to have been traded.
In a notable policy shift, the FCA reversed its earlier position in October 2025. After banning crypto exchange-traded notes for retail customers in January 2021, the regulator now permits retail customers to purchase exchange-listed crypto instruments, reflecting an evolving approach to the digital asset market.
This latest enforcement action underscores the FCA's commitment to maintaining market integrity and protecting consumers from financial crime in the rapidly evolving cryptocurrency landscape.
