FCA targets illegal crypto businesses in London, sends cease and desist orders

The UK’s Financial Conduct Authority (FCA), in coordination with HM Revenue & Customs (HMRC) and the Metropolitan Police, executed a crackdown on suspected illegal peer-to-peer (P2P) crypto businesses by issuing cease and desist orders at three locations in London.

Joint operation targets unregistered P2P crypto trading

The FCA, working closely with law enforcement and tax authorities, carried out this enforcement action following ongoing concerns about unregulated crypto trading operations. No arrests were announced as a result of the enforcement, which marks the second major operation of its kind in 2026 targeting unauthorized crypto firms in London.

Officials acted under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which give regulators the authority to intervene in financial activities suspected of facilitating criminal conduct.

Peer-to-peer crypto trading operators must obtain specific authorization from the FCA before conducting business in the UK. According to the regulator, none of the businesses targeted in this operation were on the official register, placing them outside established oversight mechanisms for monitoring money flows.

Consumers are encouraged to verify if a crypto company is properly registered by consulting the FCA’s Firm Checker tool, which provides information on authorized firms.

Steve Smart, the FCA’s executive director of enforcement and market oversight, emphasized ongoing scrutiny of the sector and said,

“Working with partners, we continue to track and disrupt illegal crypto activity. Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them.”

Detective Sergeant Sathish Alalasundaram of the Metropolitan Police also commented on law enforcement’s evolving strategies, underscoring the efforts to address new methods of criminal activity related to crypto assets.

Mini dictionary: Financial Conduct Authority (FCA), an independent financial regulatory body in the UK, oversees the conduct of financial markets and firms to protect consumers and ensure integrity in the financial system.

Regulatory crackdown precedes new cryptoasset regime

The recent enforcement follows an earlier sweep in April, when the FCA, HMRC and the South West Regional Organised Crime Unit inspected eight sites in London. Evidence collected during that operation is now central to ongoing criminal investigations and additional regulatory measures.

The FCA’s recent focus on crypto activity has already led to key convictions. Olumide Osunkoya received a four-year prison sentence after being found guilty of operating an unregistered crypto ATM network between December 2021 and September 2023, which processed £2.6 million in transactions. Authorities have also detained two individuals allegedly involved in running a separate illegal crypto exchange.

Currently, the UK regulates crypto primarily through anti-money laundering and financial promotion standards. Comprehensive regulation is set to come into force on October 25, 2027, when the UK’s full cryptoasset regime will be implemented.

The FCA took a further step towards a regulated environment by opening its cryptoasset firm authorization gateway on September 30, 2026. Detailed guidance, outlining which activities require regulatory approval, was published that same week, providing clarity for businesses seeking to operate within the law.