UK FCA raids eight sites in illegal P2P crypto probe

The Financial Conduct Authority, working with HM Revenue and Customs and the South West Regional Organized Crime Unit, inspected eight locations across the UK on Wednesday tied to unregistered peer-to-peer crypto trading. Officials issued on-site cease-and-desist notices and collected documents and other material for ongoing criminal investigations.

Peer-to-peer crypto trading lets individuals buy and sell digital assets directly with each other rather than through a central exchange. While many users search for the best P2P crypto exchanges to trade safely, under UK anti-money-laundering rules, operators carrying out this activity must register with the FCA. The regulator said no peer-to-peer traders or platforms are currently registered.

Officers on site ordered operators to stop trading immediately while they secured evidence to support criminal enquiries. Authorities did not identify any people or firms publicly following the inspections.

The raids follow previous enforcement actions against the crypto sector, including prosecutions connected to illegal crypto ATM networks and arrests tied to unlicensed exchanges. Earlier this month, agencies in the UK, the United States and Canada carried out a coordinated effort Operation Atlantic that froze millions of dollars linked to crypto scams. Investigators reported identifying more than 20,000 victims, securing over $12 million in suspected criminal proceeds and tracing more than $45 million in additional stolen crypto tied to fraud networks.

Steve Smart, the FCA’s executive director of enforcement and market oversight, warned, “Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk.” The agency said the action was part of criminal investigations rather than routine regulatory supervision because the businesses were not registered.

Slav Demchuk, chief executive of AMLBot.com, noted changes coming under the Financial Services and Markets Act-related crypto regime and said unregistered over-the-counter desks will be treated as unauthorized regulated activity. He added that unregulated OTC brokers have often acted as transfer points for illicit flows, including routes used to move USDT and BTC in and out of fiat.

The FCA opened a consultation earlier this month on guidance for a planned crypto rulebook covering stablecoins, trading platforms, custody and staking. The regime is expected to take effect in 2027, with firms able to apply for authorization from September 2026 and full compliance required once the framework is implemented.

Investigators said the evidence gathered during the inspections will feed into continuing criminal enquiries and could result in further enforcement actions or prosecutions.