By PAUL O’DONOGHUE, Senior Correspondent
THE UK’s FCA (Financial Conduct Authority) has carried out its first coordinated crackdown on illegal peer-to-peer (P2P) crypto trading, targeting eight locations across London.
In a joint operation with tax body HMRC, officials issued cease-and-desist notices at each site. They also gathered evidence now feeding into several criminal investigations.
“Peer-to-peer trading is when individuals buy and sell crypto directly with each other, rather than using a centralised exchange and requires appropriate registration,” the regulator said.
“There are currently no FCA‑registered peer-to-peer crypto traders or platforms operating in the UK.”
Steve Smart, the FCA’s executive director of enforcement and market oversight, said: “Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk,”
Law enforcement agencies said the operation aims to disrupt channels used to move illicit funds. DI Ross Flay of the South West Regional Organised Crime Unit said unregistered traders can enable criminals to “move, disguise and spend illegal money”.
The action builds on earlier enforcement steps. The FCA has prosecuted illegal crypto ATM operators and worked with police on arrests linked to an unregistered exchange in 2024.
The crackdown comes as the UK prepares a broader crypto regulatory regime by October 2027. It is set to open a licensing window in September 2026.
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