FCA targets three London sites in latest crackdown on illegal peer‑to‑peer crypto trading

The Financial Conduct Authority (FCA) has expanded its enforcement campaign against unregistered digital‑asset activity by targeting three London premises suspected of running illegal peer‑to‑peer crypto trading operations. The September 10 operation was carried out in partnership with HM Revenue & Customs (HMRC) and the Metropolitan Police Service, and resulted in cease‑and‑desist letters being served at all three locations.

What constitutes illegal peer‑to‑peer crypto trading?

Peer‑to‑peer crypto trading involves individuals buying and selling digital assets directly with each other. While personal transactions do not require FCA registration, any business‑level activity must be registered under the UK’s anti‑money‑laundering framework. The FCA notes that no peer‑to‑peer crypto businesses are currently registered, and unregistered operators can facilitate money‑laundering and other illicit activity.

Enforcement history and recent actions

The September operation follows earlier enforcement actions. In April, the FCA, HMRC and the South West Regional Organised Crime Unit inspected eight London locations, issuing cease‑and‑desist notices and collecting evidence for criminal investigations. Similar actions continued through 2024 and 2025, including arrests, seizures of crypto ATMs, and prosecutions for operating unregistered crypto services.

Upcoming regulatory changes

Later in September, the FCA will open applications for a new crypto‑authorization framework. The regime, which expands oversight beyond anti‑money‑laundering rules, will become mandatory on 25 October 2027. Firms must apply for transitional arrangements by 28 February 2027 and assess whether their activities require new permissions.

Advice for consumers

The FCA recommends that consumers check the regulator’s Firm Checker to confirm whether a crypto business holds the required registration or permissions before engaging in any transactions.