The UK Financial Conduct Authority (FCA) has moved from warnings to walk-ins. In a press release dated April 22, 2026, the regulator said it conducted its first-ever enforcement operation against illegal peer-to-peer crypto trading, hitting eight premises across London. The operation involved the HM Revenue and Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU).
What Happened On Site
FCA officials issued cease-and-desist letters at each location, ordering traders to stop all activities immediately. The regulator also confirmed that evidence gathered from the raids is now being used to support several ongoing criminal investigations. Crucially, the FCA noted that no peer-to-peer crypto traders or platforms are currently registered in the UK — meaning any such operation is unlawful.
Regulator's Warning: Unregistered Equals Illegal
“Unregistered peer-to-peer traders operating in the United Kingdom are doing so illegally and pose a financial crime risk,” said Steve Smart, FCA Executive Director of Enforcement and Market Oversight. The action was taken under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. The FCA also reminded users that crypto itself remains a high-risk investment.
Past Enforcement Actions Show a Pattern
This crackdown is part of a broader enforcement trend. Previously, the FCA prosecuted an individual linked to an illegal crypto ATM network. In June 2024, it worked with the Metropolitan Police to arrest two people suspected of running an unlicensed cryptoasset exchange.The latest raid marks the first time the FCA has specifically targeted P2P trading, signaling a new front in its regulatory war.
What Crypto Users Should Do Now
The immediate market impact is not about price — it's about compliance. The FCA's move suggests tighter scrutiny of informal crypto dealing in London and possible further actions if investigations widen. For investors, the rule is simple: use the FCA Firm Checker before using any crypto service, and avoid unregistered operators no matter how attractive the deal seems.
Disclaimer: This article is for information only. It is not legal advice. Always check official records before using any crypto service.