UK Financial Conduct Authority escalates enforcement against unregistered P2P crypto trading operations in London.
Regulation & Gov ·
The UK's Financial Conduct Authority, working jointly with HM Revenue & Customs and the Metropolitan Police, visited three London locations on September 10 and delivered cease-and-desist orders to suspected illegal peer-to-peer crypto operations. The action represents a second enforcement wave following an April sweep, with evidence from that earlier operation now feeding into criminal investigations. Steve Smart, the FCA's enforcement chief, stated that anyone operating an unregistered P2P crypto business should expect agency scrutiny.
The operations proceeded under the 2017 money laundering regulations rather than crypto-specific rules. The FCA emphasizes that no peer-to-peer crypto business holds registration anywhere in Britain, meaning all such activity in the country operates outside required anti-money laundering controls. Unregistered traders can facilitate the movement and laundering of criminal proceeds, according to the regulator. Detective Sergeant Sathish Alalasundaram of the Metropolitan Police noted that the speed of cross-border fund transfers and the complexity of cryptocurrency present investigative challenges that law enforcement continues to adapt against.
A new FCA regulatory framework takes effect on October 25, 2027, with applications for authorization opening September 30. The agency has previously secured prosecutions in this space, including a four-year sentence for operating an unlawful crypto ATM network. What remains unclear is how many unregistered operations exist and whether the September enforcement action will prompt broader compliance or further evasion.