The FCA Cracks Down on Unregistered P2P Crypto Businesses

Following a second coordinated enforcement operation in six months, the Financial Conduct Authority (FCA) has made it clear that warnings are no longer enough. The FCA is actively disrupting unregistered P2P crypto businesses, with criminal liability now a real risk for any operator trading without proper registration.

Aditya Mittal, managing principal at Capco, a global management and technology consultancy, emphasized the importance of firms understanding the regulatory perimeter of the U.K.’s incoming cryptoasset regime. Mittal stated that firms should prioritize identifying which parts of their business fall within the scope of the new regulations.

The recent guidance issued by the FCA outlined specific activities that will be covered under the new regulations. These include issuing qualifying stablecoins, operating crypto exchanges, dealing and coordinating deals, safeguarding digital assets, and staking. The guidance also highlighted the activities that will require FCA approval.

The application window for FCA approval runs from September 30 to February 28, 2027. The U.K.’s crypto regulatory framework is set to come into full force on October 25, 2027.