LONDON — The Financial Conduct Authority issued cease-and-desist letters to operators at three London premises on Sept. 10, targeting businesses suspected of running illegal peer-to-peer crypto trading operations without FCA registration.
The enforcement action, announced Sept. 17, involved collaboration with HM Revenue Customs and the Metropolitan Police Service. No arrests were announced in connection with the operation.
P2P crypto trading requires FCA registration in the UK. The regulator's public register currently shows zero registered peer-to-peer crypto businesses operating in the country. The action falls under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, with the FCA's primary focus on preventing criminal use of unregistered platforms to move illicit funds and bypass AML controls.
"Any individual operating an unregistered peer-to-peer crypto business should expect regulatory scrutiny," said Steve Smart, the FCA's executive director of enforcement and market oversight.
This marks the second major FCA operation this year. In April, the regulator collaborated with HMRC and the South West Regional Organised Crime Unit to inspect eight London locations. Those raids are supporting ongoing criminal investigations and further enforcement actions.
"The complexity of digital assets and the rapid movement of funds across international jurisdictions presents significant challenges," said Detective Sergeant Sathish Alalasundaram of the Metropolitan Police.
The FCA cited two prior cases to demonstrate enforcement trajectory. Olumide Osunkoya received a four-year sentence for operating an illegal crypto ATM network that processed £2.6 million between December 2021 and September 2023 without registration—the first UK conviction of its kind. The regulator also supported the arrest of two individuals suspected of operating an illegal crypto exchange. Both cases involved businesses conducting activities requiring registration but failing to comply.
Cryptocurrency remains largely unregulated in the UK, with current oversight limited to anti-money laundering and financial promotion rules. A comprehensive crypto regulatory regime is not scheduled to take effect until October 2027. Until then, the FCA polices the digital asset sector primarily through existing money laundering regulations rather than a purpose-built framework.
