- The FCA and police issued cease-and-desist orders to three London P2P locations.
- FCA warns unregistered P2P operators can enable money laundering by avoiding AML checks.
- FCA’s latest action follows an April crackdown targeting eight London P2P crypto locations.
The UK’s Financial Conduct Authority (FCA) is ramping up its crackdown on illegal peer-to-peer (P2P) crypto trading, targeting three London locations suspected of running unregistered crypto exchange businesses.
Working alongside HM Revenue & Customs (HMRC) and the Metropolitan Police, the FCA handed out cease-and-desist letters at all three locations, requiring the suspected businesses to stop operating. The operation happened on September 10 and was announced by the FCA on September 17, 2026.
This matters because P2P crypto trading sits in a unique spot under the UK’s current anti-money laundering (AML) rules. Individuals can buy and sell crypto directly with each other on a personal level without registering with the FCA.
However, anyone running a crypto exchange service as a business in the UK has to register under the Money Laundering Regulations. The FCA specifically flags P2P providers as a type of crypto exchange business subject to this rule.
What Counts as a Crypto Business Under FCA Rules?
When deciding if something counts as running a business, the FCA looks at a few things, such as whether the person advertises their services, makes money from it, offers crypto services as part of another business, and does it on a regular basis.
Where the operation is based matters too, as having an office or headquarters in the UK can be a sign that the business is being conducted within the UK.
That being said, the FCA’s worry isn’t just about paperwork. It stated that unregistered P2P traders can give criminals a way to move and clean dirty money because they’re operating outside the checks meant to prevent money laundering.
This follows an earlier crackdown by the FCA in April, when the regulator teamed up with law enforcement to hit eight London locations suspected of illegal P2P crypto trading.
What This Crackdown Means for Crypto Users and Traders
For users, the key takeaway is to verify who they are dealing with before using a P2P crypto service. The FCA advises checking a firm’s status through its Firm Checker and dealing only with registered providers where required.
Unregistered operators are not subject to FCA oversight, meaning users may not benefit from the same regulatory safeguards or standards expected from authorised firms.
Related: UK Stablecoin Rules Split Payments From Lending Under 2027 Crypto Regime
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