FCA, the UK’s financial authority, carried out a simultaneous operation at eight different points of illegal peer-to-peer cryptocurrency trading in the capital London. The inspections were carried out jointly by the Tax Office and the South West Regional Organized Crime Unit, with the aim of combating organized financial crime in the country. FCA teams gave official warnings to stop activities at the raided addresses and collected various evidence. This data obtained will form the basis of multiple criminal investigations currently ongoing.
Legal obligations and registration status
According to current legislation in the UK, all platforms offering cryptocurrency trading services must register with the FCA. However, according to the authority, no peer-to-peer crypto trading person or platform is officially registered in the country. It was determined that the audited sites directly connected users without providing the necessary registration and controls to prevent money laundering.
Steve Smart, FCA’s director of market surveillance, pointed out that unregistered platforms pose a great risk. Smart emphasized that such activities are illegal and make it difficult to fight financial abuse and crime:
“Peer-to-peer crypto trading platforms operating unregistered in the UK are considered illegal and pose a serious risk of financial crime.”
Similarly, DI Ross Flay, from the South West Organized Crime Unit, also highlighted the importance of the issue, pointing out that such platforms make it easier for proceeds of crime to be introduced into the system.
Previous steps taken and new regulations
In recent years, the FCA has also taken various actions against illegal crypto ATMs and conducted investigations against individuals and companies associated with unregistered crypto exchanges. It was reported that some names associated with an unregistered cryptocurrency platform were detained in 2024.
The authority also moved against unauthorized financial promotions by offshore-based HTX platform last year; implemented special controls on names promoting high-risk crypto products on social media.
Important warnings to consumers
The FCA urged consumers to check the list of “registered firms” on its website. In the announcement made by the institution, it was warned that people who use peer-to-peer platforms that do not have FCA approval will not be able to benefit from Financial Ombudsman Services or any compensation mechanism. Additionally, it was pointed out that stolen funds may be in circulation in such transactions and serious risks may arise.
The comprehensive legal framework for regulating crypto assets in the UK is planned to come into force in October 2027. In this context, the first license applications are expected to be received in September 2026. Current regulations mainly cover anti-black money and financial promotion activities.
FCA aims to strengthen transparency, security and consumer rights in the crypto market with inspections and new regulations.
