FCA Raids Eight London P2P Crypto Sites in Money-Laundering Probe

The Financial Conduct Authority led coordinated inspections at eight London premises on a Tuesday morning, issuing cease-and-desist letters to operators it suspects were running unregistered peer-to-peer crypto trading. HM Revenue & Customs and the South West Regional Organized Crime Unit joined the action. Officers carried out on-site checks under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 and seized material to support criminal inquiries into suspected money laundering.

At each location FCA staff examined records, systems and transactions and required an immediate halt to unauthorized trading. Regulators say the evidence gathered during the inspections is now being reviewed by investigators to determine next steps in the criminal probe. No details on arrests or charges have been released.

The FCA noted there are currently no registered peer-to-peer crypto trading platforms operating legally in the UK, so such activity falls outside the regulator’s authorisation and supervision. Authorities have warned for years that unregistered crypto activity can present money-laundering risks.

Steve Smart, the FCA’s executive director of enforcement and market oversight, said in a statement: “Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk. We will use our powers and work with partners to disrupt them.” Detective Inspector Ross Flay of the South West Regional Organized Crime Unit described the operation as a targeted effort to cut off routes used by criminals and to prevent traders from providing a way to move, disguise and spend illicit money: “By working with our colleagues at the FCA and HMRC, we are able to effectively target and disrupt unregistered peer-to-peer crypto traders operating illegally.”

Regulators said this is the FCA’s first coordinated physical enforcement action focused specifically on peer-to-peer crypto trading. The action follows repeated warnings to the sector and comes while the FCA is consulting on rules for crypto activities, including stablecoin issuance, trading platforms, custody and staking. The consultation closes June 3, with final rules expected in summer 2026. Firms will be able to apply for authorisation from September 2026 and the full regime is due to take effect in October 2027. Rules for decentralized finance and ledger resilience are planned for later consultations.

Peer-to-peer platforms let users exchange digital assets directly with each other and often settle trades with cash or bank transfers. Regulators say those features can make it harder to trace the origin of funds, which is a focus of the ongoing investigations.

The FCA said it will continue to work with HMRC and law enforcement to identify and disrupt unregistered peer-to-peer crypto trading that may facilitate money laundering or other criminal activity.