The FCA has carried out its first operation with partners to disrupt illegal peer-to-peer crypto trading across multiple London locations.
On 18 May 2026 we updated paragraph two to say that where the activity is carried out by way of business in the UK, it requires appropriate registration. Without registration, that activity is illegal. Peer-to-peer transactions carried out on a personal basis do not require FCA registration.
Working with HM Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), the FCA targeted 8 premises suspected of illegal peer-to-peer crypto trading. The FCA issued cease and desist letters at each site, notifying traders to stop illegal activity immediately. Evidence obtained during the on-site inspections is supporting a number of ongoing criminal investigations.
Peer-to-peer trading is when individuals buy and sell crypto directly with each other. Anyone doing this by way of business in the UK requires appropriate registration. There are currently no FCA registered peer-to-peer crypto businesses operating 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.
'Consumers should protect themselves by only dealing with firms registered with the FCA and by remembering that crypto remains a high risk investment.'
DI Ross Flay of SWROCU 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.'
The FCA 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 Service to arrest 2 individuals suspected of running an illegal cryptoasset exchange.
The Government’s National Risk Assessment of Money Laundering and Terrorist Financing outlines how cryptoassets are increasingly used to launder the proceeds of crime. The FCA continues to work with domestic and international partners to fight financial crime and protect consumers.
Consumers can check whether a crypto firm is correctly registered with the FCA using the FCA’s Firm Checker[3].
Notes to editors
- Action was taken under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
- Crypto is a high-risk investment and remains largely unregulated in the UK, except for anti-money laundering and financial promotion.
- Use the FCA’s Firm Checker[3] to check a firm’s permissions.
- The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA[4].