On September 10, the FCA, alongside HM Revenue & Customs and the Metropolitan Police Service, conducted operations at the targeted locations. Cease and desist letters were issued to traders at these premises, instructing them to halt any suspected illegal crypto business activities.

Peer-to-peer crypto trading involves the direct buying and selling of digital assets between individuals. While personal transactions do not require FCA registration, conducting this activity as a business in the UK necessitates the appropriate registration. Currently, no peer-to-peer crypto trading businesses are registered with the regulator.

The FCA emphasized that unregistered operators can serve as a conduit for criminals to move and launder illicit funds. By operating outside the FCA’s registration system, these businesses evade controls designed to detect and prevent money laundering activities.

Steve Smart, executive director of enforcement and market oversight at the FCA, stated, “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.”

This recent enforcement action builds upon earlier operations that began earlier this year. In April, the FCA, in collaboration with partner agencies, targeted eight London locations suspected of hosting unregistered peer-to-peer crypto businesses. Cease and desist letters were issued at these locations, and evidence collected during the inspections was retained for criminal investigations.

The FCA has been focusing its enforcement efforts on businesses engaging in crypto activities without the required registration under the existing anti-money laundering framework. Since 2020, the regulator has been responsible for supervising relevant UK crypto businesses to ensure compliance with anti-money laundering and counter-terrorist financing requirements.

Detective Sergeant Sathish Alalasundaram of the Metropolitan Police Service highlighted the challenges faced by investigators in tackling criminal activity involving cryptocurrencies. He noted that the speed at which funds can be moved across jurisdictions presents ongoing challenges for law enforcement agencies.

Previous enforcement cases involving unregistered crypto businesses have resulted in criminal convictions and arrests. The FCA continues to pursue individuals and entities operating illegal crypto activities without proper registration.

The recent operation precedes the opening of applications for the UK’s forthcoming crypto authorization framework. Under final FCA guidance, applications for the new regime will open on September 30, 2026, with the framework becoming mandatory on October 25, 2027. This framework will expand FCA oversight beyond existing anti-money laundering and financial promotion requirements to cover activities such as operating cryptoasset trading platforms and issuing stablecoins.

As the UK’s crypto oversight expands, the FCA advises consumers to verify the registration and permissions of crypto businesses using its Firm Checker tool. By ensuring compliance with the new regulatory framework, the FCA aims to enhance market integrity and consumer protection in the crypto sector.