FCA and Partners Target Three London Premises in Illegal Peer-to-Peer Crypto Trading Crackdown
The UK Financial Conduct Authority has carried out a further enforcement operation against suspected illegal peer-to-peer crypto trading, targeting three London premises in a joint action with HM Revenue & Customs and the Metropolitan Police Service.
The operation took place on 10 September 2026 and was announced by the FCA on 17 September. Cease and desist letters were issued at all three premises, requiring traders to stop any suspected illegal crypto business. The FCA said the action was taken under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Peer-to-peer crypto trading involves individuals buying and selling cryptoassets directly with one another. Personal peer-to-peer transactions do not in themselves require FCA registration, but the regulator states that anyone carrying on the activity by way of business in the UK requires appropriate registration. According to the FCA, there are currently no FCA-registered peer-to-peer crypto businesses operating in the UK.
The regulator linked the enforcement action directly to financial-crime risk. It said unregistered peer-to-peer crypto traders operating as businesses can provide a route for criminals to move and launder illicit funds because they operate outside registration requirements and the controls designed to detect and prevent money laundering.
The September operation follows an earlier FCA-led action in April 2026, when the regulator, HMRC and the South West Regional Organised Crime Unit targeted eight premises suspected of illegal peer-to-peer crypto trading. The FCA said evidence gathered during that operation is being used to support criminal investigations and other enforcement action.
The FCA also pointed to its broader enforcement record against illegal cryptoasset activity, including prosecution of an unlawful crypto ATM network operator and support for the arrest of two people suspected of operating an illegal crypto exchange.
The current UK crypto regime remains transitional. The FCA noted that cryptoassets are largely unregulated in the UK at present apart from anti-money laundering requirements and financial-promotion rules, with the wider regulatory regime due to take effect in October 2027.
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Financial Conduct Authority — FCA and partners continues crackdown on illegal crypto trading
