LONDON, April 22, 2026 — The UK Financial Conduct Authority said it carried out its first operation with partners to disrupt illegal peer-to-peer crypto trading across multiple London locations, targeting eight premises suspected of operating without the required registration, according to a statement published Wednesday.
The regulator said it worked with HM Revenue & Customs and the South West Regional Organised Crime Unit during the operation. The FCA said it issued cease and desist letters at each site instructing traders to stop suspected illegal activity immediately, while evidence gathered during on-site inspections is supporting a number of ongoing criminal investigations.
First action targeting illegal P2P crypto trading
Peer-to-peer crypto trading involves individuals buying and selling digital assets directly with one another rather than through a centralized exchange. The FCA said such activity requires appropriate registration in the UK and that there are currently no FCA-registered peer-to-peer crypto traders or platforms operating in the country.
The operation marks the first time the regulator has publicly announced enforcement action specifically targeting suspected illegal peer-to-peer crypto trading across multiple sites.
FCA warns of financial crime risks
“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk,” Steve Smart, executive director of enforcement and market oversight at the FCA, said in the statement.
He added that consumers should deal only with firms registered with the regulator and remember that crypto remains a high-risk investment.
Detective Inspector Ross Flay of the South West Regional Organised Crime Unit said the joint action was intended to disrupt unregistered traders allegedly providing channels for criminals to move, disguise and spend illicit funds.
Previous enforcement measures
The FCA said it has previously taken action against unregistered cryptoasset activity in the UK, including prosecuting an individual involved in an illegal network of crypto ATMs.
In June 2024, the regulator also worked with the Metropolitan Police Service to arrest two individuals suspected of operating an illegal cryptoasset exchange.
Broader anti-money laundering focus
The agency cited the UK government’s National Risk Assessment of Money Laundering and Terrorist Financing, which said cryptoassets are increasingly being used to launder proceeds of crime.
The FCA said it will continue working with domestic and international partners to combat financial crime and protect consumers.
