FCA Raids Eight London Locations Over Illegal Unregistered P2P Crypto Trading

The UK Financial Conduct Authority (FCA) carried out its first coordinated operation targeting illegal peer-to-peer (P2P) crypto trading, raiding eight London locations suspected of running unregistered P2P crypto trading services.

“FCA targets illegal crypto traders in first coordinated UK crackdown The UK’s Financial Conduct Authority has carried out its first coordinated operation to disrupt illegal peer-to-peer crypto trading, targeting multiple locations across London”

AMBCrypto

The FCA said it worked alongside HM Revenue & Customs and the South West Regional Organised Crime Unit to inspect “eight locations linked to illegal crypto trading,” and that officers issued cease-and-desist notices on site ordering operators to halt activity immediately.

AMBCrypto

In a statement cited by Reuters, the FCA said “Evidence obtained during the on-site inspections is supporting a number of ongoing criminal investigations,” as investigators gathered material tied to multiple probes.

The FCA also said there are currently “no FCA registered peer-to-peer crypto traders or platforms operating in the UK,” framing the raids as enforcement against activity that lacks required authorization.

Steve Smart, the FCA’s executive director of enforcement and market oversight, described the conduct as illegal and risky, saying, “Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk.”

The FCA’s partners echoed the goal of disrupting illicit financial routes, with Detective Inspector Ross Flay of SWROCU arguing that unregistered traders can enable criminals to “move, disguise and spend illegal money.”

The FCA and its partners tied the operation to anti-money laundering and counter-terror financing rules, describing the raids as action under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

The FCA’s materials said P2P crypto trading “requires registration under anti-money laundering rules,” and that in the UK “no peer-to-peer crypto traders or platforms are currently registered with the regulator.”

Bitcoin News

Multiple outlets repeated that the FCA’s enforcement was aimed at activity that bypasses centralized exchanges, describing P2P trading as “individuals buy and sell crypto directly with one another, bypassing a centralized exchange.”

The FCA also emphasized that the operation was not limited to a single type of crypto service, but rather part of a broader crackdown on unregistered activity, following prior actions against “illegal crypto ATM networks” and “unlicensed exchanges.”

Cointelegraph framed the raids as the FCA’s first operation focused explicitly on P2P trading, but said it “follow a series of enforcement steps against the sector,” including prosecutions and arrests linked to unlicensed venues.

The FCA’s statement also warned consumers that crypto remains a high-risk investment and that the regulator’s focus includes AML and financial promotion rules, with Wired-gov.net noting, “crypto remains a high-risk investment and remains largely unregulated in the UK, except for anti-money laundering and financial promotion.”

The raids landed as the FCA continues building toward a wider crypto regulatory regime under the Financial Services and Markets Act (FSMA), with guidance expected to take effect in 2027.

“The London P2P sweep: UK FCA raids eight illegal peer-to-peer trading hubs The sites were targeted for facilitating P2P trading without required registration or anti-money laundering controls, posing a financial crime risk”

CoinDesk

Cointelegraph said the FCA opened a consultation on guidance for its upcoming crypto regulatory regime, expected to take effect in 2027, and that companies are expected to be able to apply for authorization from September 2026 with full compliance required once the framework is implemented.

The Block and AMBCrypto similarly described the regime’s timeline, with The Block stating the broader regulatory regime is “due in 2027” and that a licensing gateway is expected to open in “September 2026.”

AMBCrypto said the regime is expected to be “fully implemented by 2027,” and that “Applications are set to open in 2026,” while also noting that cryptoassets in the UK still sit largely outside direct regulation.

Several outlets described what the future regime would cover, with Cointelegraph saying the guidance will cover “stablecoins, trading platforms, custody and staking,” and with Cointelegraph adding that the authorization window begins in September 2026.

Cointelegraph also quoted AMLBot.com CEO Slav Demchuk describing the enforcement shift under the incoming FSMA crypto regime, saying, “unregistered OTC desks are no longer an AML-registration gap, they’re an unauthorised regulated activity, and enforcement will look more like traditional finance.”

The FCA’s P2P crackdown was also described as part of a broader international enforcement wave against crypto-enabled financial crime, with Cointelegraph pointing to a coordinated effort called Operation Atlantic.

Cointelegraph said the operation was “carried out in March” and was led by agencies including the UK’s National Crime Agency, the US Secret Service and Canadian law enforcement and securities regulators.

Cointelegraph

It reported that officials said the operation identified “more than 20,000 victims across the three countries” and “secured over $12 million in suspected criminal proceeds.”

Cointelegraph added that investigators “traced more than $45 million in additional stolen crypto linked to fraud networks,” tying the international effort to stolen assets and fraud.

TradingView’s version of the story reiterated the same Operation Atlantic details, stating that authorities in the UK, the United States, and Canada “froze millions of dollars linked to crypto scams” as part of the coordinated enforcement effort.

In the same broader context, Wired-gov.net and CoinDesk both emphasized that the FCA’s action is meant to disrupt routes used to “move, disguise and spend illegal money,” aligning the UK’s P2P raids with the stated goals of international operations.

The FCA said the evidence gathered during the on-site inspections is feeding into ongoing criminal investigations, and it issued cease-and-desist notices ordering operators to halt activity immediately.

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Financial Times

Reuters reported that the FCA “swooped on eight London addresses” and that it had issued cease and desist letters at each site, while the FCA statement said the evidence is supporting “a number of ongoing criminal investigations.”

FX News Group

Cointelegraph and CoinDesk both described the operation as a shift from warnings to direct enforcement, with Cointelegraph saying the raids mark “the FCA’s first operation of this kind focused on P2P crypto trading.”

The FCA also urged consumers to check authorization status, with Cointelegraph saying “no peer-to-peer crypto traders or platforms are currently registered with the regulator,” and Wired-gov.net directing consumers to use the FCA’s Firm Checker.

Wired-gov.net quoted Steve Smart warning that consumers should protect themselves by only dealing with firms registered with the FCA, and it also reiterated that “Consumers should protect themselves by only dealing with firms registered with the FCA and by remembering that crypto remains a high-risk investment.”

Looking ahead, Cointelegraph said the FCA opened a consultation on guidance for its upcoming crypto regulatory regime expected to take effect in 2027, and that companies can apply for authorization from September 2026, with full compliance required once implemented.