The UK’s Financial Conduct Authority has conducted its first coordinated crackdown on illegal peer-to-peer cryptoasset trading. The operation targeted eight premises across London suspected of operating unregistered services. The regulator, working with HM Revenue & Customs and the South West Regional Organised Crime Unit, issued cease-and-desist notices and gathered evidence for criminal probes.
The Financial Conduct Authority coordinated its first operation to disrupt illegal peer-to-peer crypto trading. It inspected eight premises in London suspected of offering unregistered crypto trading services.
Officers issued cease-and-desist notices at each site and collected evidence for criminal investigations. This action signals a shift from warnings to direct enforcement within the UK’s crypto sector.
The FCA stated individuals offering such services must be registered under anti-money laundering rules. No such traders or platforms are currently authorized to operate in the country.
Officials warned unregistered activity poses risks to consumers. It can also provide a route for criminals to move and disguise illicit funds.
The crackdown follows the FCA recently outlining the scope for the UK’s upcoming crypto regulatory framework. This regime is expected to be fully implemented by 2027.
Under proposed rules, firms involved in trading, custody, and stablecoin issuance will need authorization. Applications are set to open in 2026.
The FCA has previously acted against unregistered crypto operations like illegal ATM networks. The regulator said it will continue working with partners to tackle financial crime.
It also urged consumers to check whether firms are authorized before engaging with crypto services. This enforcement is part of a broader effort to curb illegal activity.
