Headline: FCA, HMRC and SWROCU Raid Eight London P2P Crypto Hubs in First Coordinated Crackdown
The U.K.’s Financial Conduct Authority (FCA), working with His Majesty’s Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), has carried out its first coordinated enforcement sweep targeting illegal peer-to-peer (P2P) crypto trading hubs across London. Authorities served cease-and-desist notices at eight locations and seized evidence now feeding into multiple criminal investigations, the FCA said.
What happened
Regulators say the sites were suspected of facilitating unregistered P2P crypto trading—transactions where individuals buy and sell crypto directly with one another—without the required registration or anti-money-laundering (AML) safeguards. Under U.K. law, anyone operating as a crypto exchange provider must be registered with the FCA; the regulator confirmed there are currently no registered P2P crypto traders or platforms in the country.
“Unregistered peer-to-peer crypto traders operating in the U.K. are doing so illegally and pose a financial crime risk,” said Steve Smart, the FCA’s executive director of enforcement and market oversight. DI Ross Flay of SWROCU added that unregistered traders can enable criminals to “move, disguise and spend illegal money.”
Why it matters
Law enforcement framed the action as an effort to choke off pathways used to launder or move illicit funds. P2P structures, regulators warn, can be attractive to bad actors when they operate outside supervision and without AML controls.
This operation builds on a string of prior enforcement efforts by the FCA and partners: prosecutions of illegal crypto ATMs over several years, police action tied to an unregistered crypto exchange in 2024, and last year’s action against offshore platform HTX for unlawful financial promotions. The FCA has also expanded oversight of social media figures promoting high-risk crypto products.
Regulatory backdrop and consumer warning
The crackdown comes as the U.K. prepares a broader regulatory regime for crypto, with a licensing window expected to open in September 2026 and the full framework due by October 2027. For now, the existing rules mainly focus on AML compliance and restrictions on financial promotions.
The FCA warned consumers to check whether firms are registered using its online register and stressed the risks of dealing with unregistered P2P traders: users have no recourse to the Financial Ombudsman Service or compensation schemes and may unwittingly transact in funds that are stolen or otherwise illicit.
Bottom line
The London sweep signals tougher enforcement against off‑book crypto activity as U.K. authorities seek to close channels that could be exploited for financial crime ahead of a wider regulatory rollout. Consumers and market participants should verify firm registration and be wary of unregulated P2P offers.
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