FCA, HMRC and SWROCU raid illegal peer-to-peer crypto sites

On Wednesday the Financial Conduct Authority, HM Revenue & Customs and the South West Regional Organized Crime Unit carried out coordinated visits to eight premises in London and issued cease-and-desist letters targeting unregistered peer-to-peer crypto trading. Evidence gathered during the inspections is supporting several ongoing criminal investigations.

Peer-to-peer crypto trading refers to direct buying and selling of digital assets between individuals rather than through a centralized exchange. The FCA requires operators that facilitate such activity to be registered; the regulator says there are currently no FCA-registered peer-to-peer crypto traders or platforms operating in the UK.

Steve Smart, the FCA’s executive director of enforcement and market oversight, warned: “Unregistered peer-to-peer crypto traders in the UK are operating illegally and pose a financial crime risk.” Detective Inspector Ross Flay of the South West Regional Organized Crime Unit said unregistered peer-to-peer traders can provide a route for criminals to move, disguise and spend illicit money.

Authorities said the visits and letters were intended to halt unregistered trading quickly while investigative work continues. The inspections form part of coordinated enforcement activity that combines regulatory powers with police support.

The FCA has previously pursued cases in the crypto sector, including prosecuting an individual for operating an illegal network of crypto ATMs and working with London police in June 2024 on arrests tied to an alleged illegal crypto exchange. Legal advisers noted regulators are enforcing existing rules even as a wider regulatory framework for crypto is still being implemented.

Some crypto-related activities already require FCA registration for anti-money-laundering checks and for financial promotion rules. The regulator has indicated a licensing gateway may open in September 2026, with a fuller licensing and supervisory regime expected to take effect by October 2027. The FCA reiterated that crypto remains a high-risk investment and that much crypto activity in the UK falls outside existing registration requirements and supervision.

Thomas Cattee, a white-collar crime partner at Gherson Solicitors LLP, said the action shows the regulator is prepared to pursue individuals alleged to be involved in unregistered crypto-asset activity and to work with other agencies to do so.