The Financial Conduct Authority (FCA) of the UK announced Wednesday that it executed its initial coordinated raids targeting unauthorized peer-to-peer cryptocurrency trading, focusing on eight premises in London with assistance from tax authorities and organized crime units.
On Tuesday morning, enforcement officers issued cease-and-desist orders at each site to immediately stop illegal operations. These actions were conducted under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. The evidence collected during these inspections is being used to bolster ongoing criminal investigations, as stated by the regulator.
The operation involved collaboration with HM Revenue & Customs and the South West Regional Organized Crime Unit alongside FCA enforcement teams. Senior officials from these agencies stressed the risks posed by unregistered operators.
Steve Smart, executive director of enforcement and market oversight at the FCA, emphasized in a statement that “Unregistered peer-to-peer crypto traders operating within the UK are acting illegally and present a financial crime risk.” He added, “We will use our authority and collaborate with partners to disrupt such activities.”
Detective Inspector Ross Flay from the South West Regional Organized Crime Unit voiced concerns about money laundering threats.
“By collaborating with FCA and HMRC colleagues, we can effectively target and dismantle unregistered peer-to-peer crypto traders operating unlawfully,” said Flay. “Our aim is to prevent these traders from being used as conduits for criminals to move, disguise, and utilize illegal funds.”
This raid marks a significant intensification in the UK’s enforcement measures against cryptocurrency operations. Currently, there are no registered peer-to-peer crypto traders or platforms operating legally within the UK, indicating all such trading activities occur outside regulatory oversight.
Peer-to-peer platforms typically facilitate direct exchanges of digital assets using cash or bank transfers, which has raised money laundering concerns among global financial regulators. These raids represent the FCA’s first physical enforcement action in this sector following years of issuing warnings about unregistered crypto businesses.
Earlier this month, the FCA initiated a consultation on regulated cryptocurrency activities, including stablecoin issuance, trading platforms, custody, and staking. Crypto firms will be eligible to apply for authorization starting September 2026, with the entire regulatory framework set to take effect in October 2027.
The consultation period ends June 3, with final regulations anticipated in summer 2026. Separate consultations planned later this year will address DeFi and distributed ledger resilience.