The UK Financial Conduct Authority (FCA) has targeted three locations in London suspected of being used to run illegal peer-to-peer crypto trading businesses.
The operation took place on Sept. 10 and was carried out with HM Revenue & Customs and the Metropolitan Police Service. The FCA issued cease and desist letters at all three locations, ordering the suspected businesses to stop their activities.
Peer-to-peer crypto trading allows people to buy and sell digital assets directly with each other. Personal transactions do not require FCA registration, but businesses carrying out these activities in the UK must be properly registered. The FCA said there are currently no registered peer-to-peer crypto trading businesses in the country.
The regulator warned that unregistered crypto businesses can create opportunities for criminals to move and launder illegal funds because they operate outside financial crime controls.
Steve Smart, executive director of enforcement and market oversight at the FCA, said the regulator would continue working with law enforcement agencies to identify and disrupt illegal crypto activity.
The latest action follows a similar operation in April, when the FCA and partner agencies targeted eight London locations suspected of hosting unregistered peer-to-peer crypto businesses.
During the April 22 operation, officials issued cease and desist letters at all eight locations and collected evidence for ongoing criminal investigations. The FCA said evidence from that operation is now being used in further investigations and enforcement action.
The regulator has been focusing on crypto businesses operating without the registration required under the UK’s anti-money laundering rules. The FCA has supervised relevant crypto businesses for anti-money laundering and counter-terrorist financing requirements since 2020.
The Metropolitan Police said investigating crypto-related crime can be difficult because digital assets can be moved quickly across borders. Police and other agencies are continuing to develop new methods to track and disrupt criminal activity involving cryptocurrencies.
The FCA has previously taken action against other unregistered crypto businesses.
One case involved Olumide Osunkoya, who pleaded guilty in September 2024 to operating an illegal crypto ATM network. The network processed about £2.6 million in transactions between December 2021 and September 2023. He later received a four-year prison sentence and became the first person in the UK to receive a criminal sentence for unregistered crypto activity.
In another case, two London residents were arrested in June 2024 over allegations that they operated an illegal crypto exchange. Authorities believed more than £1 billion worth of unregistered crypto assets had been traded through the business.
Enforcement continued in July 2025, when the FCA and Metropolitan Police searched four locations in southwest London. Seven crypto ATMs were seized and two people were arrested on suspicion of money laundering and operating an illegal cryptoasset exchange.
UK crypto businesses covered by the existing Money Laundering Regulations must register with the FCA and follow financial crime prevention requirements. Businesses that provide covered services without the required registration can face enforcement action.
The latest operation also comes as the UK prepares to introduce a broader crypto authorization system.
Under the FCA’s new framework, applications are scheduled to open on Sept. 30, 2026. Firms seeking transitional arrangements must apply by Feb. 28, 2027, before the new framework becomes mandatory on Oct. 25, 2027.
The new system will expand FCA oversight to a wider range of crypto activities, including operating crypto trading platforms, safeguarding crypto assets, dealing and arranging transactions, issuing qualifying stablecoins and arranging crypto staking services.
Existing FCA registration under the Money Laundering Regulations will not automatically become authorization under the new system. Companies will need to review their activities and apply for the relevant permissions if they want to continue providing regulated services after the new rules take effect.
Until the new framework becomes mandatory, crypto activity in the UK remains subject to existing requirements, including anti-money laundering rules and financial promotion regulations.
The FCA continues to advise consumers to check its Firm Checker before dealing with a crypto business to confirm whether the company has the required registration or permissions.
