The UK Financial Conduct Authority (FCA) has taken further action against suspected illegal peer-to-peer cryptocurrency trading businesses in London as regulators continue efforts to tackle unregistered activity in the digital asset sector.
The operation, carried out on September 10, targeted three London premises suspected of operating peer-to-peer crypto businesses without the required registration. The FCA worked with HM Revenue & Customs (HMRC) and the Metropolitan Police Service during the operation.
Authorities issued cease and desist letters at all three locations, requiring the suspected operators to stop their crypto-related business activities. According to the FCA, there are currently no peer-to-peer crypto trading businesses registered with the regulator in the UK.
Peer-to-peer crypto trading allows individuals to buy and sell digital assets directly with each other. While individuals conducting such transactions personally do not require FCA registration, businesses carrying out peer-to-peer crypto trading as a commercial activity in the UK must meet the applicable registration requirements.
The FCA said unregistered operators can create risks for the financial system because they may provide channels for criminals to move or launder illicit funds. Registered businesses are required to follow anti-money laundering and counter-terrorist financing controls.
Steve Smart, the FCA’s executive director of enforcement and market oversight, said the regulator would continue working with its partners to identify and disrupt illegal crypto activity.
The latest action follows an earlier FCA operation in April, when authorities targeted eight London premises suspected of conducting illegal peer-to-peer crypto trading. Evidence collected during that operation is being used to support ongoing criminal investigations and further enforcement action.
The FCA has also taken enforcement action against other forms of unregistered crypto activity in the UK. In July 2025, the regulator and Metropolitan Police searched four premises in southwest London and seized seven crypto ATMs. Two people were arrested on suspicion of money laundering and operating an illegal cryptoasset exchange.
The crackdown comes as the UK prepares to introduce a broader regulatory framework for cryptoassets. The FCA published final guidance on September 16 outlining which crypto activities will require authorization under the upcoming regime.
Applications for the new framework are scheduled to open on September 30, 2026, while the broader authorization requirements are due to take effect on October 25, 2027.
Until the new regime takes effect, crypto activity in the UK remains subject to existing requirements, including anti-money laundering and financial promotion rules. The FCA advises consumers to check whether a crypto business has the appropriate registration or permissions before using its services.
