FCA Targets Illegal Peer To Peer Crypto Trading In London

The Financial Conduct Authority (FCA) has escalated its enforcement stance on cryptoassets, launching its first coordinated crackdown on illegal peer to peer crypto trading operations in the UK. Announced on 22 April 2026, the action signals a more assertive regulatory approach to decentralised trading models that fall outside traditional supervisory frameworks.

The operation, conducted alongside HM Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), targeted eight locations across London suspected of facilitating unregistered crypto trading. The FCA issued cease and desist notices on site, while evidence gathered is now feeding into ongoing criminal investigations. This reflects a shift from reactive enforcement to proactive disruption of illicit crypto activity at source.

From a regulatory perspective, the key issue is that peer to peer crypto trading constitutes regulated activity under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 when carried out by way of business. The FCA has made clear that no peer to peer crypto firms are currently registered in the UK, meaning any such commercial operations are, by definition, operating unlawfully.

The enforcement action underscores growing concern around the use of decentralised crypto channels for money laundering. Law enforcement agencies have explicitly linked these trading models to financial crime risks, particularly as they can provide alternative routes to move and obscure illicit funds outside regulated exchanges. This aligns with findings in the UK Government’s National Risk Assessment, which identifies cryptoassets as an increasingly prominent vector for laundering proceeds of crime.

Strategically, the FCA is reinforcing two parallel messages. First, it is willing to collaborate closely with law enforcement and tax authorities to tackle crypto-related financial crime. Second, it is reiterating that consumer protection remains central, with continued warnings that cryptoassets are high risk and largely unregulated beyond anti money laundering controls and financial promotions.

This action also builds on prior enforcement trends, including prosecutions linked to illegal crypto ATMs and arrests tied to unregistered exchanges. The trajectory is clear. The FCA is progressively closing regulatory gaps and signalling that decentralisation does not equate to exemption from compliance obligations.

For firms and market participants, the implications are immediate. Any business model involving cryptoasset intermediation, even in a peer to peer context, must be assessed against UK registration requirements. For consumers, the message remains consistent. Engagement should be limited to FCA registered firms, verified through the FCA Firm Checker.

Read the press release here.