- The FCA, HMRC and the Metropolitan Police issued cease and desist letters at three London premises suspected of running illegal peer-to-peer crypto businesses.
- No P2P crypto firm is FCA-registered, making them unregistered by default.
- With the UK’s full crypto regime still more than a year away, the FCA is enforcing entirely through money laundering rules.
The UK’s Financial Conduct Authority (FCA), working with HM Revenue & Customs (HMRC) and the Metropolitan Police, hit three London premises with cease and desist orders on suspicions that they are outlets for illegal peer-to-peer (P2P) crypto businesses.
No arrests were disclosed in the sweep, the second such in 2026.
Along with recent documents from the regulator detailing the particulars of the crypto regime that kicks off in 2027, businesses running illegal crypto trading operations in the UK are now on alert.
Unregistered crypto P2P firms land in FCA’s scope
In its September 17 statement, the FCA said it had sent letters on September 10 ordering traders at multiple London locations to halt any suspected illegal crypto activity.
Businesses need FCA authorization to run a peer-to-peer crypto trading operation, and per the regulator, no entity is currently registered to run such a business in the UK. These unregistered operators sit outside the channels the UK can monitor for dirty money flows.
Consumers can check whether a crypto firm is registered through the FCA’s Firm Checker.
The operation ran under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
“Working with partners, we continue to track and disrupt illegal crypto activity,” said Steve Smart, the FCA’s executive director of enforcement and market oversight. “Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them.”
Detective Sergeant Sathish Alalasundaram of the Metropolitan Police sounded the same warning, saying that the force is adapting as criminals change their tactics.
The UK is bringing crypto under regulatory umbrella
Before this September action, the FCA, HMRC and the South West Regional Organised Crime Unit inspected eight London sites in an April operation. The regulator said that it is using evidence it collected then in active criminal investigations and for further enforcement.
The FCA is adding crypto convictions to its portfolio, playing a pivotal role in Olumide Osunkoya landing a four-year sentence for the unregistered crypto ATM network he ran between December 2021 and September 2023. The first conviction of its kind in the UK took down an operation that processed £2.6 million in lifetime volume.
The regulator arrested two others suspected of operating a separate illegal crypto exchange.
Crypto stays largely unregulated in the UK outside anti-money laundering and financial promotion rules until October 25, 2027, when the country’s full cryptoasset regime takes effect.
The FCA opened its authorization gateway for firms on September 30, 2026, and published guidance the same week on which activities will need clearance, Cryptopolitan reported.
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FAQs
Why are all UK peer-to-peer crypto businesses considered unregistered?
Running a P2P crypto business in the UK requires FCA registration, but there are currently no FCA-registered peer-to-peer crypto businesses in the country, so any firm operating commercially is unregistered by definition.
What action did the FCA take and when?
The FCA, working with HMRC and the Metropolitan Police, issued cease and desist letters at three London premises on September 10, 2026, ordering traders to stop suspected illegal crypto businesses. No arrests were announced.
When does the UK's full crypto regime take effect?
The UK's comprehensive cryptoasset regime comes into force on October 25, 2027, with the FCA's authorization gateway for firms having opened on September 30, 2026. Until then, crypto is regulated only through anti-money laundering and financial promotion rules.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
