UK watchdog raids eight London sites in sweep against illegal P2P crypto trading
The Financial Conduct Authority (FCA) mounted a coordinated enforcement sweep on April 22, raiding eight locations across London it suspects of operating illegal peer-to-peer (P2P) cryptocurrency trading services. The operation, carried out alongside tax authorities and the Metropolitan Police, resulted in stop notices served at every site ordering those operations to halt all unregistered cryptoasset activity while criminal investigations continue.
The FCA said the raids form part of ongoing probes under the Money Laundering Regulations 2017 and counter-terrorist financing laws, underscoring that cryptoasset exchange providers must be registered to operate in the UK. Crucially, the FCA currently has zero registered P2P crypto trading businesses on its books — meaning any platform offering P2P services to UK users is operating without formal authorization.
Why it matters
- Regulatory risk: Stop notices and criminal investigations signal a tougher approach to unlicensed crypto activity, especially models that facilitate direct, person-to-person trades outside regulated venues.
- Consumer risk: The FCA has repeatedly warned consumers that they should be prepared to lose all their money in crypto and that unregistered P2P trading offers no regulatory protection.
- Industry impact: The action is another clear message to operators: register or face enforcement.
This latest sweep builds on a string of FCA actions against unlicensed crypto operations. Previous crackdowns have targeted unregistered crypto ATMs and exchanges — including disruptions to at least 26 illegal crypto machines nationwide. In 2024 the FCA and Metropolitan Police arrested two people in London accused of running an unlicensed crypto exchange that is alleged to have processed more than $1.25 billion of unregistered crypto over several years, according to the FCA and media reports.
Therese Chambers, the FCA’s Executive Director of Enforcement and Market Oversight, reiterated the regulator’s stance: “Crypto businesses operating without registration are illegal,” she said, adding the watchdog “will do everything in our power to stop crypto firms from operating illegally in the UK.”
Tight registration regime
The FCA has been strict about approvals: roughly 90% of crypto firms applying for registration in recent years have been rejected, largely over anti-money-laundering and fraud-prevention shortcomings. That stringent screening, combined with stepped-up enforcement and recent court actions over unlawful financial promotions, is forcing the UK-facing crypto sector to either comply or risk shutdown.
Bottom line for P2P operators and users: the FCA is escalating enforcement — unregistered platforms are exposed to raids, stop notices and criminal probes, and users on those platforms have little to no regulatory protection.
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