Finance17 September, 20262 min read
FCA, HMRC, and Metropolitan Police Raid Three London Sites Over Illegal Peer-To-Peer Crypto Trading
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FCA with HMRC and Metropolitan Police targeted three London premises for illegal peer-to-peer crypto trading. Cease and desist letters issued at all three sites, marking enforcement ahead of 2027 framework.
7 outlets told this the same way.
FCA raids three London sites
Britain’s Financial Conduct Authority (FCA) said on Thursday it took action against illegal peer-to-peer cryptocurrency trading in London by targeting three premises suspected of operating unregistered crypto businesses and issuing cease and desist letters at each site. The FCA said the operation was conducted earlier in September and was carried out with tax officials and police under money laundering and terrorist financing regulations, while the regulator did not identify the premises.
The FCA said there are currently no registered peer-to-peer crypto trading businesses operating in Britain, and it warned that unregistered peer-to-peer crypto traders can be used to move and launder illicit funds. Steve Smart, executive director of enforcement and market oversight at the FCA, said: "Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them."
Partners and enforcement rationale
The FCA said the crackdown was a joint effort with HM Revenue & Customs (HMRC) and London’s Metropolitan Police, and it described the action as requiring traders to stop participating in illegal crypto businesses. The FCA said peer-to-peer trading occurs when individuals buy and sell crypto directly with each other, and it said anyone doing this by way of business in the UK requires appropriate registration.
The FCA said that by operating outside the FCA’s registration regime, traders avoid controls designed to detect and prevent money laundering, and it framed the enforcement as tracking and disrupting illegal crypto activity. Detective sergeant Sathish Alalasundaram of the Metropolitan Police Service said: "The complex nature of cryptocurrency, combined with the speed at which funds can be moved across jurisdictions, presents ongoing challenges for those investigating."
Regulatory shift and deadlines
The FCA’s action was described as a sign the era of “light-touch” crypto regulation in the U.K. is ending, with Caroline Black of Gherson Solicitors LLP saying the operation confirms the FCA’s shift from warnings to active disruption.
Black said the enforcement creates a "criminal liability a live risk" for any operator trading by way of business without the proper registration, as the FCA’s incoming cryptoasset regime approaches implementation.
The FCA guidance referenced by Cryptonews.net and CoinDesk said the application window runs from Sept. 30 to Feb. 28, 2027, and that the U.K. crypto regulatory framework comes into full force on Oct. 25, 2027.
Aditya Mittal, managing principal at Capco, said that "following the guidance from the FCA earlier this week" firms should prioritize understanding which parts of their business fall within scope.