UK FCA Cracks Down on Illegal P2P Crypto Trading in London

The U.K. Financial Conduct Authority (FCA) has stepped up enforcement against illegal peer-to-peer crypto trading, targeting three London premises as the country prepares to introduce its broader cryptocurrency regulatory framework.

The FCA said the Sept. 10 operation was conducted alongside HM Revenue & Customs (HMRC) and the Metropolitan Police Service. Authorities issued cease-and-desist letters at all three locations, ordering traders to halt suspected illegal crypto businesses.

Peer-to-peer, or P2P, crypto trading allows individuals to buy and sell digital assets directly with one another. While personal transactions do not require registration, anyone conducting P2P crypto trading as a business in the U.K. must be appropriately registered. The FCA said there are currently no registered P2P crypto businesses operating in the country.

The regulator warned that unregistered P2P crypto operations can create channels for criminals to move and launder illicit funds because they operate outside anti-money laundering controls. The latest enforcement action follows a similar FCA-led operation in April that targeted eight premises, with evidence from that crackdown supporting criminal investigations and other enforcement measures.

The crackdown comes as the FCA provides additional clarity on the U.K.’s incoming crypto regulatory regime. On Sept. 16, the watchdog published final perimeter guidance explaining when cryptoasset businesses may require FCA authorization.

The guidance covers activities including issuing qualifying stablecoins, operating cryptoasset trading platforms, dealing in and arranging crypto transactions, safeguarding digital assets and arranging cryptoasset staking. The rules are intended to help companies determine whether their operations fall within the new regulatory perimeter.

Applications for authorization under the new regime open on Sept. 30, 2026, while the regulatory framework is scheduled to take effect on Oct. 25, 2027.

The latest enforcement push underscores the FCA’s increasing scrutiny of unregistered crypto businesses as the U.K. moves toward a more comprehensive regulatory system for digital assets.