The London P2P sweep: FCA shutters eight unlicensed crypto trading hubs
In its first coordinated crackdown on illicit peer-to-peer (P2P) crypto trading, the U.K.’s Financial Conduct Authority (FCA), working with His Majesty’s Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), has raided eight locations across London. Regulators served cease-and-desist notices at each site and collected evidence that the FCA says is now feeding several criminal investigations.
What the raids targeted
Officials say the sites were suspected of facilitating P2P crypto trading—direct, person-to-person buy and sell activity—without the registrations or anti-money-laundering (AML) controls required under U.K. law. The FCA reiterated that anyone operating as a crypto exchange provider in the U.K. must be registered; there are currently no registered P2P crypto traders or platforms in the country.
Regulators’ warning
“Unregistered peer-to-peer crypto traders operating in the U.K. are doing so illegally and pose a financial crime risk,” said Steve Smart, the FCA’s executive director of enforcement and market oversight. DI Ross Flay of SWROCU added that unregistered traders can enable criminals to “move, disguise and spend illegal money.”
Enforcement context
The operation builds on a string of FCA actions against unregulated crypto activity:
- Prosecutions and takedowns of illegal crypto ATMs over recent years.
- Police arrests related to an unregistered crypto exchange in 2024.
- Regulatory moves last year against offshore platform HTX for unlawful financial promotions, alongside expanded scrutiny of social media figures promoting high-risk crypto products.
Regulatory timeline and consumer advice
The sweep comes as the U.K. prepares a broader regulatory regime for crypto: the full framework is due by October 2027, with a licensing window expected to open in September 2026. Today’s rules focus heavily on AML compliance and financial promotion controls.
The FCA urged consumers to verify firms using its online register and warned that anyone trading with unregistered P2P operators lacks access to the Financial Ombudsman Service and compensation schemes—and risks unknowingly accepting stolen funds.
What this means for the market
The action signals regulators’ intent to clamp down on unlicensed, in-person OTC and P2P activity that could be exploited for money laundering. For traders and operators, the message is clear: without FCA registration and AML safeguards, P2P operations in the U.K. are exposed to enforcement action and carry significant user risk.
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