Eight London sites raided in peer-to-peer crypto trading bust
The City watchdogs, working with HMRC and the Regional Organised Crime Unit, have carried out the first crackdown on illegal crypto trading across multiple London locations.
The enforcement targeted eight premises in London suspected of illegal peer-to-peer crypto trading by the Financial Conduct Authority (FCA).
The traders were issued cease-and-desist letters at each site, notifying them to stop ‘illegal’ activity immediately.
The evidence obtained during the on-site inspections was said to have supported several ongoing criminal investigations by the regulator.
Peer-to-peer trading is when individuals buy and sell crypto directly with each other, rather than using a centralised exchange; however, there are currently no FCA-registered peer-to-peer crypto traders in the UK.
Steve Smart, executive director of enforcement and market oversight at the FCA, said: ‘Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk. We will use our powers and work with partners to disrupt them.”
Detective Inspector Ross Flay of South West Regional Organised Crime Unit said: “By working with our colleagues at the FCA and HMRC, we are able to effectively target and disrupt unregistered peer-to-peer crypto traders operating illegally.
“As law enforcement, we want to stop these traders providing a route for criminals to move, disguise and spend illegal money,” he added.
Regulator hyper-focused on crypto
The FCA has been implementing a strict, phased regulatory framework to curb illegal crypto activity as it prepares for crypto to be formally regulated in the UK from October 2027.
The watchdog has previously taken action against unregistered cryptoasset activity in the UK, including prosecuting an individual operating an illegal network of crypto ATMs.
In June 2024, the FCA worked with the Metropolitan Police (MET) to arrest two individuals suspected of running an illegal cryptoasset exchange, through which more than £1bn of unregistered cryptoassets are believed to have been bought and sold.
However, after banning crypto exchange-traded notes for retail customers in January 2021, the FCA reversed its position in October 2025, allowing retail customers to purchase exchange-listed crypto instruments.