Britain’s Financial Conduct Authority (FCA) has carried out simultaneous raids at eight locations across London targeting illegal peer-to-peer cryptocurrency trading hubs. The operation, coordinated with Her Majesty’s Revenue and Customs as well as the South West Regional Organised Crime Unit, was aimed at combating organised financial crime. FCA teams issued formal warnings to halt all operations at the targeted sites and gathered substantial evidence to support ongoing criminal investigations.
Legal obligations and registration status
Under UK law, every platform offering cryptocurrency trading services must register with the FCA. However, authorities note that not a single peer-to-peer crypto trading entity or individual is currently registered in the country. The platforms under scrutiny were found to regularly connect users without the required registration or anti-money laundering safeguards in place.
Steve Smart, the FCA’s Executive Director of Enforcement and Market Oversight, emphasized the significant risks posed by unregistered platforms. He explained that such activities are illegal and undermine efforts to fight financial abuse and crime.
“Peer-to-peer crypto trading platforms operating without registration in the UK are considered illegal and present a serious risk of financial crime,” Smart stated.
Similarly, Detective Inspector Ross Flay of the South West Regional Organised Crime Unit highlighted the importance of the issue, noting that these platforms make it easier for criminal proceeds to enter the financial system.
Previous actions and new regulations
In recent years, the FCA has also acted against illegal crypto ATMs and investigated individuals and companies with links to unregistered crypto exchanges. In 2024, several people linked to an unregistered cryptocurrency platform were reported to have been detained.
Last year, the regulator also took action against unauthorized financial promotions by the offshore-based HTX platform and increased scrutiny of individuals promoting high-risk crypto products on social media.
Important warnings for consumers
The FCA has urged consumers to check its public register of authorised firms. The authority warned that those using peer-to-peer platforms that lack FCA approval cannot seek recourse from the Financial Ombudsman Service or any compensation scheme. The notice emphasized that stolen funds may circulate on such platforms, exposing users to major risks.
A comprehensive regulatory framework for crypto assets in the UK is scheduled to become effective in October 2027. The authorities plan to accept the first licence applications in September 2026. Until then, existing rules mainly focus on anti-money laundering and financial promotion activities.
Through these enforcement actions and upcoming regulations, the FCA aims to boost transparency, increase safety, and strengthen consumer protection within the cryptocurrency sector.
