UK Regulators Raid Three London P2P Crypto Hubs, Order Traders to Stop

The UK’s Financial Conduct Authority (FCA), working with HM Revenue & Customs (HMRC) and the Metropolitan Police, has taken enforcement action against three London premises suspected of operating illegal peer-to-peer cryptocurrency businesses.

The operation, carried out on September 10, targeted locations believed to be involved in P2P crypto trading without the required regulatory registration. Authorities issued cease-and-desist letters at all three premises, requiring the traders to stop the suspected illegal activity.

The FCA said there are currently no FCA-registered peer-to-peer crypto businesses operating in the UK. Under the UK’s current rules, individuals buying and selling crypto on a personal basis do not require FCA registration. However, businesses providing in-scope cryptoasset services must be appropriately registered under the UK’s anti-money-laundering framework.

The FCA said unregistered P2P crypto businesses can create channels through which criminals move or launder illicit funds because they operate outside controls designed to detect and prevent money laundering.

Steve Smart, the FCA’s executive director of enforcement and market oversight, warned that anyone running an unregistered P2P crypto business should expect regulatory scrutiny.

The Metropolitan Police said the speed at which cryptocurrency can move across jurisdictions continues to create challenges for law enforcement and financial-crime investigations.

The latest action follows an earlier FCA operation in April, when authorities targeted eight London premises suspected of illegal P2P crypto trading. Evidence gathered during that operation is being used to support criminal investigations and further enforcement action, according to the FCA.

The crackdown comes as the UK prepares to introduce a broader regulatory framework for cryptoassets. The FCA says applications for authorisation under the forthcoming Financial Services and Markets Act regime are scheduled to open on September 30, 2026, with the new regime expected to begin on October 25, 2027.

For P2P traders and crypto businesses operating in Britain, the latest enforcement action highlights the distinction between private crypto transactions and operating a crypto business. While individuals can conduct personal P2P transactions without FCA registration, businesses providing regulated or in-scope services must meet the applicable registration requirements.