The UK Financial Conduct Authority has stepped up its campaign against unregistered crypto businesses by targeting three London premises suspected of operating illegal peer-to-peer crypto trading services.<\/p>\n\n\n\n
The enforcement action took place on September 10 and involved the FCA, HM Revenue & Customs, and the Metropolitan Police Service.<\/p>\n\n\n\n
Cease and desist letters were issued at all three locations, ordering suspected operators to stop any crypto activity being carried out illegally.<\/p>\n\n\n\n
Peer-to-peer crypto trading allows individuals to buy and sell digital assets directly with one another.<\/p>\n\n\n\n
Personal transactions do not normally require FCA registration. However, anyone offering peer-to-peer crypto trading as a business in the UK must meet the relevant registration requirements.<\/p>\n\n\n\n
At present, no peer-to-peer crypto trading businesses are registered with the FCA.<\/p>\n\n\n\n
The regulator says this creates a potential enforcement concern because unregistered operators can avoid the financial crime controls applied to businesses operating within the FCA\u2019s framework.<\/p>\n\n\n\n
Those controls are designed to help detect and prevent money laundering and other illicit financial activity.<\/p>\n\n\n\n
Steve Smart, the FCA\u2019s executive director of enforcement and market oversight, said the regulator continues to work with law enforcement partners to identify and disrupt illegal crypto businesses.<\/p>\n\n\n\n
The warning was clear: firms offering unregistered peer-to-peer crypto services should expect regulatory attention.<\/p>\n\n\n\n
The latest operation builds on enforcement activity carried out earlier in 2026.<\/p>\n\n\n\n
In April, the FCA and partner agencies inspected eight London locations suspected of hosting unregistered peer-to-peer crypto businesses.<\/p>\n\n\n\n
That operation took place on April 22 with support from HMRC and the South West Regional Organised Crime Unit.<\/p>\n\n\n\n
Cease and desist notices were issued at all eight locations.<\/p>\n\n\n\n
The FCA also collected evidence during the inspections, which it said is now supporting ongoing criminal investigations and other enforcement action.<\/p>\n\n\n\n
Both the April and September operations were carried out under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.<\/p>\n\n\n\n
The FCA has supervised relevant UK crypto businesses for anti-money laundering and counter-terrorist financing compliance since 2020.<\/p>\n\n\n\n
The Metropolitan Police also acknowledged the difficulties involved in investigating digital asset crime.<\/p>\n\n\n\n
Detective Sergeant Sathish Alalasundaram said cryptocurrencies can allow funds to move quickly across different jurisdictions, making investigations more complex.<\/p>\n\n\n\n
Law enforcement agencies are therefore continuing to improve their investigative capabilities and disruption methods as criminals change the way they use digital assets.<\/p>\n\n\n\n
The cross-border nature of crypto transactions remains one of the biggest challenges for authorities dealing with suspected money laundering and other financial crimes.<\/p>\n\n\n\n
The regulator\u2019s recent London operations are part of a broader enforcement campaign against businesses operating without the required registration.<\/p>\n\n\n\n
One high-profile case involved Olumide Osunkoya, who pleaded guilty in September 2024 to offenses linked to an illegal crypto ATM network.<\/p>\n\n\n\n
The network processed around \u00a32.6 million in transactions between December 2021 and September 2023.<\/p>\n\n\n\n
Osunkoya admitted operating crypto ATMs without FCA registration, along with offenses involving false documents and criminal property.<\/p>\n\n\n\n
He was later sentenced to four years in prison, becoming the first person in the UK to receive a criminal sentence for unregistered crypto activity.<\/p>\n\n\n\n
The FCA has also taken action against suspected illegal crypto exchanges.<\/p>\n\n\n\n
In June 2024, two London residents were arrested on suspicion of operating an unregistered crypto exchange.<\/p>\n\n\n\n
Authorities believed more than \u00a31 billion in cryptoassets had been bought and sold through the business.<\/p>\n\n\n\n
The FCA inspected offices linked to the suspects, while Metropolitan Police officers searched two residential properties and seized several digital devices.<\/p>\n\n\n\n
Both individuals were interviewed under caution and later released on bail while the investigation continued.<\/p>\n\n\n\n
Enforcement activity continued in July 2025 when the FCA and Metropolitan Police searched four premises in southwest London.<\/p>\n\n\n\n
Seven crypto ATMs were seized and two people were arrested on suspicion of money laundering and operating an illegal cryptoasset exchange.<\/p>\n\n\n\n
Cryptoasset businesses providing services covered by the UK\u2019s Money Laundering Regulations must register with the FCA.<\/p>\n\n\n\n
They are also required to follow applicable anti-money laundering and financial crime controls.<\/p>\n\n\n\n
Operating covered crypto services as a business without the required registration can lead to enforcement action.<\/p>\n\n\n\n
For now, much of the UK crypto sector remains outside the country\u2019s full financial services regulatory framework.<\/p>\n\n\n\n
However, anti-money laundering rules and financial promotion requirements already apply to certain crypto activities.<\/p>\n\n\n\n
That regulatory structure is set to expand significantly from 2027.<\/p>\n\n\n\n
The September enforcement operation comes shortly before the FCA begins accepting applications under the UK\u2019s upcoming crypto authorization framework.<\/p>\n\n\n\n
According to final FCA guidance published on September 16, applications will open on September 30, 2026.<\/p>\n\n\n\n
Firms seeking transitional arrangements must apply by February 28, 2027.<\/p>\n\n\n\n
The new framework becomes mandatory on October 25, 2027.<\/p>\n\n\n\n
The regime will expand the FCA\u2019s oversight beyond the anti-money laundering and financial promotion requirements that currently cover much of the industry.<\/p>\n\n\n\n
The new regulatory framework will cover a wider range of crypto services.<\/p>\n\n\n\n
These include operating cryptoasset trading platforms, safeguarding digital assets, dealing in and arranging crypto transactions, issuing qualifying stablecoins, and arranging cryptoasset staking.<\/p>\n\n\n\n
Companies already registered with the FCA under the Money Laundering Regulations will not automatically receive authorization under the new system.<\/p>\n\n\n\n
Existing firms will need to review their activities and apply for the appropriate permissions if they want to continue providing regulated services after October 2027.<\/p>\n\n\n\n
The FCA has already finalized several important parts of the incoming regulatory framework.<\/p>\n\n\n\n
Rules published in June cover financial resilience, market integrity, stablecoins, and consumer protections.<\/p>\n\n\n\n
Crypto businesses serving customers who buy, trade, or hold digital assets will face requirements such as capital standards and stress testing.<\/p>\n\n\n\n
Market integrity rules will also address issues including insider trading and market manipulation.<\/p>\n\n\n\n
These changes represent a significant expansion of UK crypto regulation compared with the current system.<\/p>\n\n\n\n
Until the new framework becomes fully mandatory in October 2027, UK crypto regulation will remain focused mainly on areas such as anti-money laundering requirements and financial promotions.<\/p>\n\n\n\n
The FCA continues to advise consumers to check whether a crypto business is properly registered or authorized before dealing with it.<\/p>\n\n\n\n
Its Firm Checker can be used to confirm whether a company holds the required regulatory status.<\/p>\n\n\n\n
The regulator\u2019s latest operation in London shows that enforcement against suspected unregistered crypto businesses remains active even before the broader authorization regime comes into force.<\/p>\n\n\n\n
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The UK Financial Conduct Authority has stepped up its campaign against unregistered crypto businesses by targeting three London premises suspected of operating illegal peer-to-peer crypto trading services. The enforcement action took place on September 10 and involved the FCA, HM Revenue & Customs, and the Metropolitan Police Service. Cease and desist letters were issued at…<\/p>\n","protected":false},"author":3,"featured_media":16650,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[2140,1180,2390,2345],"class_list":["post-16649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-crypto-rules","tag-fca","tag-london","tag-targets"],"yoast_head":"\n