FCA Raids Illegal P2P Crypto Sites in London
Working with HMRC and the Metropolitan Police, the FCA took action against three P2P locations in London. The move fits into the lead-up to the UK’s new crypto regime, with extra focus on stablecoins, exchanges, and anti-money laundering rules.
Key Takeaways
- The UK FCA raided three illegal peer-to-peer crypto locations in London together with HM Revenue & Customs and the Metropolitan Police.
- The regulator sent cease-and-desist letters and stressed that there are currently no FCA-registered peer-to-peer crypto companies active in the UK.
- The action fits into tougher enforcement ahead of the UK’s new crypto regime, which will fully take effect on October 25, 2027.
The UK Financial Conduct Authority (FCA) took action against three illegal peer-to-peer crypto locations in London on Thursday. The regulator did this together with HM Revenue & Customs and the Metropolitan Police, and sent cease-and-desist letters to the three addresses to shut down the activity. The move shows that enforcement in the UK is being stepped up as the new crypto rules get closer.
Tougher Action in London
Peer-to-peer trading means people buy and sell crypto directly with each other. According to the FCA, there are currently no FCA-registered peer-to-peer crypto companies active in the UK. Anyone operating outside that registration regime is, according to the regulator, avoiding checks meant to detect and prevent money laundering.
The crackdown fits into a broader shift from warnings to active enforcement. Caroline Black, a consultant at Gherson Solicitors LLP, said this is the second coordinated enforcement operation in six months and that criminal liability also remains a real risk for operators acting without the proper registration.
New Rules Are Getting Closer
Earlier this week, the FCA also issued new guidance on how the upcoming UK cryptoasset regime will affect companies. That guidance covers, among other things, issuing qualifying stablecoins, running crypto exchanges, arranging deals, safeguarding digital assets, and staking. According to Aditya Mittal of Capco, companies first need to figure out which parts of their business fall under the rules.
The application period for licenses runs from September 30 to February 28, 2027. The full UK crypto framework will take effect on October 25, 2027. For European crypto watchers, the timing matters because it clearly draws the line around which activities may and may not take place under supervision in the UK.
What This Means for the Market
The action against P2P locations shows that regulators are not only looking at large crypto platforms, but also at smaller trading setups where direct transactions happen between users. For companies active in or around the UK, that could mean registration, customer checks, and anti-money laundering processes become a hard requirement faster. It is also a sign that the shift to a tighter regulated crypto landscape is already becoming visible before the new framework is fully in force.
