FCA Targets Illegal Crypto Trading at 8 London Sites

The FCA, HMRC, and SWROCU raided 8 London sites in the UK’s first crackdown on illegal peer-to-peer crypto trading operations.

The UK’s Financial Conduct Authority has made a bold move against illegal crypto activity. 

Working alongside HM Revenue and Customs and the South West Regional Organised Crime Unit, the FCA targeted eight London premises. The operation marks the regulator’s first coordinated crackdown on illegal peer-to-peer crypto trading. 

Cease and desist letters were issued at every site. Evidence gathered during the inspections is now supporting several active criminal investigations.

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What Is Peer-to-Peer Crypto Trading and Why Is It Illegal in the UK?

Peer-to-peer crypto trading involves individuals buying and selling digital assets directly with each other. Unlike centralised exchanges, these transactions bypass formal oversight. 

The FCA notes that this type of trading requires proper registration. Currently, there are no FCA-registered peer-to-peer crypto traders or platforms operating anywhere in the UK.

Steve Smart, the FCA’s Executive Director of Enforcement and Market Oversight, stated that unregistered peer-to-peer traders are operating illegally and present a serious financial crime risk. 

He reminded consumers to only deal with FCA-registered firms. Smart also stressed that crypto remains a high-risk investment for all buyers.

The regulator has been building toward this kind of enforcement for some time. In June 2024, the FCA worked with the Metropolitan Police to arrest two individuals linked to an illegal cryptoasset exchange. 

Before that, the FCA prosecuted a person running an illegal network of crypto ATMs.

How Law Enforcement Is Disrupting Illegal Crypto Networks in London

SWROCU Detective Inspector Ross Flay highlighted the value of cross-agency cooperation. 

He said working with the FCA and HMRC allows law enforcement to effectively target illegal traders. The goal, he explained, is to cut off routes that criminals use to move, hide, and spend illegal money.

This kind of coordinated approach signals a shift in how UK authorities handle crypto enforcement. 

Rather than reacting to individual complaints, agencies are now conducting joint field operations. That makes it harder for illegal traders to avoid detection.

The operation also sends a message to others running unregistered crypto services. Regulators and law enforcement are watching, and the crackdown is far from over.

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FCA Crypto Enforcement and the Growing Money Laundering Risk

The UK government’s National Risk Assessment of Money Laundering and Terrorist Financing has flagged cryptoassets as a growing concern. 

The report outlines how criminals are increasingly using digital assets to launder money. The FCA continues to work with both local and international partners to address this threat.

Illegal peer-to-peer crypto trading creates gaps that bad actors exploit. 

Without registration and oversight, there is no way to track suspicious transactions. That directly enables financial crime on a larger scale.

The FCA’s latest operation makes clear that enforcement is ramping up. Anyone engaging in unregistered crypto trading in the UK faces serious legal consequences.