Summary
- The Financial Conduct Authority, HM Revenue & Customs, and the Metropolitan Police conducted inspections at three London sites on September 10.
- All three locations received cease and desist orders, halting suspected illicit operations.
- The FCA asserts that there are no registered peer-to-peer crypto businesses in the UK.
The Financial Conduct Authority (FCA) has intensified its efforts against unregistered peer-to-peer cryptocurrency trading in London, collaborating with HM Revenue & Customs and the Metropolitan Police to issue cease and desist orders at three different locations.
This operation, conducted on September 10, was carried out under the money laundering regulations established in 2017. This follows an earlier operation in April, the findings of which are now aiding ongoing criminal investigations.
We targeted three locations believed to be involved in illegal peer-to-peer crypto trading by individuals operating as businesses in the UK, in a joint operation with @HMRCgovuk and @metpoliceuk.
These unregistered traders can facilitate the movement and laundering of illicit funds,… pic.twitter.com/TOqaqkyG4G
— Financial Conduct Authority (@TheFCA) September 17, 2026
In the UK, any business engaged in buying and selling cryptocurrency directly with individuals must be registered. The FCA has confirmed that currently, there are no registered peer-to-peer crypto businesses operating in the country.
This means that all such operations are inherently unregistered, making it essential for authorities to locate them rather than distinguishing between compliant and non-compliant entities.
FCA's Stance on P2P Trading
The FCA pointed out that unregistered traders evade the anti-money laundering regulations that registration would enforce, turning them into potential channels for the transfer and laundering of criminal proceeds.
“Anyone operating an unregistered peer-to-peer crypto business should assume we are scrutinizing their activities,” stated Steve Smart, the FCA's executive director of enforcement and market oversight.
Detective Sergeant Sathish Alalasundaram from the Metropolitan Police highlighted the challenges posed by the fast-paced nature of cryptocurrency transactions and the complexities involved in tracking funds across borders. He mentioned that law enforcement agencies are adjusting their strategies to keep pace with evolving criminal tactics.
Myriad: What’s the next move for Bitcoin? Click to share your thoughts.The FCA has previously prosecuted cases in this domain, including a four-year prison sentence for Olumide Osunkoya, who operated an illegal crypto ATM network, and assisted in the arrest of two individuals suspected of running an unauthorized exchange.
Currently, cryptocurrency remains largely unregulated in the UK beyond existing money laundering laws and rules governing financial promotions. Therefore, these enforcement actions are conducted under the 2017 legislation rather than any specific crypto regulations. However, this will change on October 25, 2027, when the FCA's new regulatory framework comes into effect, with applications for authorization set to open on September 30.