The FCA has carried out its first operation to disrupt illegal peer-to-peer crypto trading across multiple London locations.
Working with HMRC and the South West Regional Organised Crime Unit (SWROCU), the FCA targeted 8 premises suspected of illegal peer-to-peer crypto trading.
The regulator issued cease and desist letters at each site, notifying traders to stop illegal activity immediately.
Peer-to-peer trading is when individuals buy and sell crypto directly with each other, rather than using a centralised exchange and requires appropriate registration. There are currently no FCA registered peer-to-peer crypto traders or platforms 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.”
The FCA added that evidence obtained during the on-site inspections is supporting a number of ongoing criminal investigations.
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.
Crypto assets will become regulated by the FCA from October 2027, with firms able to start applying for authorisation from September.
Under the new rules, crypto exchanges, dealers and agents will be brought into the regulatory perimeter.
Crypto firms with UK customers will also have to meet similar standards on transparency, consumer protection and operational resilience as other firms regulated by the FCA.
The regulator is looking to consult on guidance for firms following Parliament confirming which crypto asset activities will fall within the scope of regulation in February.
The Government began the process for legislation bringing crypto assets into the regulatory perimeter in April 2025.
Research from the FCA in 2025 found that 12% of UK adults owned crypto, up from 10% in previous findings.
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