The UK’s Financial Conduct Authority (FCA) targeted three London locations suspected of running illegal peer-to-peer cryptocurrency trading operations. During a 10 September raid, the regulator served cease and desist orders at all three sites, instructing traders to halt suspected unlawful crypto activities. The FCA acted alongside HM Revenue & Customs and the Metropolitan Police Service.
The FCA announced the enforcement action on 17 September, which is part of its campaign against unregistered crypto trading alongside HM Revenue & Customs and the Metropolitan Police Service. They have not publicly identified the premises or the individuals involved.
Peer-to-peer crypto trading involves individuals buying and selling digital assets directly with one another rather than through a conventional exchange. In the UK, the FCA requires appropriate registration for this activity when carried on by way of business. Currently, there are no FCA-registered peer-to-peer crypto businesses operating in the UK.
The FCA has linked the enforcement action to financial-crime concerns, as unregistered businesses can operate outside controls intended to identify suspicious customers and transactions. This can potentially provide a route for criminals to move or launder illicit funds.
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Steve Smart, the FCA’s executive director of enforcement and market oversight, said the regulator and its partners would continue to identify and disrupt illegal crypto activity. The Metropolitan Police Service also participated in the operation, with Detective Sergeant Sathish Alalasundaram highlighting the challenge of investigating cryptoassets that can move quickly across jurisdictions.
The latest operation follows the FCA’s first coordinated crackdown on illegal peer-to-peer crypto trading in April, which targeted eight premises across London. Cease and desist letters were issued at each site, and evidence gathered during the inspections has supported continuing criminal investigations.
The enforcement drive comes as the UK prepares for a wider cryptoasset regulatory regime. The FCA has published guidance stating that the UK Stablecoin Rules 2026 will come into force on 25 October 2027. Applications for authorisation are due to open from 30 September 2026, covering activities including cryptoasset trading platforms and certain stablecoin activities.
The distinction between personal crypto transactions and activity carried on as a business is significant, with individuals not requiring registration simply because they buy or sell cryptoassets directly with another person. However, the regulatory issue arises where peer-to-peer trading is conducted commercially in the UK without the required registration.
