Finance
UK Targets Illegal Crypto Trading in London Crackdown
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
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Britain’s FCA, working with HMRC and SWROCU, performed its first joint operation targeting eight London locations for illegal peer-to-peer crypto trading. Cease-and-desist letters were issued; no P2P crypto traders are currently FCA‑registered in the UK.
FCA Swoops on Suspected Illegal Peer-to-Peer Crypto Traders in London
FCA's First Major Operation Against Illegal Crypto Trading
LONDON, April 22 (Reuters) - Britain's Financial Conduct Authority (FCA) on Wednesday swooped on eight London addresses suspected of illegal peer-to-peer crypto trading in its first such operation with other agencies, the financial regulator said on Wednesday.
Details of the Operation
Working with tax officials and police under money laundering and terrorist financing regulations, the FCA said it had issued cease and desist letters at each site.
Evidence and Ongoing Investigations
"Evidence obtained during the on-site inspections is supporting a number of ongoing criminal investigations," the FCA said in a statement.
Regulatory Context and Risks
Preventing Criminal Activity
Authorities want to prevent such traders from providing a route for criminals to move, disguise and spend money. Peer-to-peer traders, who shun centralised exchanges, have to be registered in Britain - and there are currently no FCA-registered peer-to-peer crypto traders here.
Crypto Assets: A High-Risk Investment
Authorities rank crypto assets as a high-risk investment in Britain, where they remain largely unregulated, except for under anti-money laundering and financial promotion rules.
Industry Reaction
Legal Perspective
"The resources and coordination deployed in this operation show that the FCA isn't just making statements about its areas of focus, it is acting on them," said Imogen Makin, counsel at law firm WilmerHale in London.
Future Outlook
"It seems likely that we will continue to see similar crackdowns in future as the FCA remains focused on combatting the risks associated with crypto and financial crime."
(Reporting by Muvija M and Kirstin Ridley; editing by Sarah Young and Chizu Nomiyama )
Key Takeaways
- •The FCA led a coordinated raid on eight London addresses suspected of facilitating unregistered peer-to-peer crypto trading, issuing cease‑and‑desist notices and gathering evidence for criminal probes. (fca.org.uk)
- •There are currently no FCA‑registered peer‑to‑peer crypto traders in the UK, making these operations illegal under anti‑money laundering and terrorist financing regulations. (fca.org.uk)
- •This enforcement builds on previous actions such as FCA legal proceedings against HTX for illegal promotions and underscores increasing regulator scrutiny of crypto activities. (fca.org.uk)
References
Frequently Asked Questions about UK targets illegal crypto trading in London crackdown
1What action did the FCA take against illegal crypto traders in London?
The FCA raided eight London addresses suspected of illegal peer-to-peer crypto trading, issuing cease and desist letters at each site.
2Why is the FCA targeting peer-to-peer crypto trading?
Authorities aim to prevent peer-to-peer crypto traders from enabling criminals to move, disguise, and spend illicit money.
3Are peer-to-peer crypto traders required to be registered in the UK?
Yes, peer-to-peer crypto traders must be registered in Britain; currently, there are no FCA-registered peer-to-peer crypto traders.
4How does the FCA view crypto assets in Britain?
The FCA classifies crypto assets as high-risk investments and focuses regulation on anti-money laundering and financial promotion rules.
5Will there be more FCA crackdowns on illegal crypto trading?
Experts suggest that similar operations are likely as the FCA continues to combat crypto-related financial crime.
