UK regulators crack down on illegal peer-to-peer crypto trading

The UK Financial Conduct Authority (FCA) has conducted enforcement operations against three premises suspected of engaging in illegal peer-to-peer cryptocurrency trading in London. The action was carried out in collaboration with HM Revenue & Customs (HMRC) and the Metropolitan Police Service.

Cease and desist letters were issued at all targeted locations, requiring the traders to halt suspected illegal business activities. Under UK regulations, individuals conducting peer-to-peer crypto trading as a business must be appropriately registered with the FCA. Currently, there are no FCA-registered peer-to-peer crypto businesses operating in the country.

Regulators noted that unregistered peer-to-peer traders can provide channels for criminals to move and launder illicit funds by bypassing controls designed to detect financial crime. This operation follows previous enforcement actions taken by the FCA in April 2026.