The City watchdog has targeted three London premises suspected of illegal peer-to-peer crypto trading. The Financial Conduct Authority (FCA), in a joint operation with HMRC and the Metropolitan Police, issued three cease-and-desist letters on Thursday to individuals trading through UK businesses, ordering them to stop the alleged “illegal” activity.
Peer-to-peer trading allows individuals to buy and sell crypto directly with each other, bypassing centralised exchanges. Currently, no peer-to-peer crypto traders are FCA-registered in the UK. Authorities have stated that unregistered peer-to-peer crypto traders can be used to move and launder illicit funds.
This action follows the FCA's first formal crackdown in April, which targeted eight London premises suspected of peer-to-peer crypto trading. Evidence from that operation has since supported several criminal investigations. Steve Smart, the FCA’s executive director of enforcement and market oversight, stated that the regulator continues “to track and disrupt illegal crypto trading.”
The latest cease-and-desist letters coincide with the FCA's move to tighten regulation of the UK’s cryptoasset regime under rules first announced in June. New guidance outlined on Wednesday indicates that from October 2027, firms will require FCA approval to deal with British customers. Under current rules, crypto firms only need to register with the regulator for anti-money laundering checks.