Under U.K. law, anyone operating as a crypto exchange provider must register with the FCA. The regulator confirmed there are currently no registered peer-to-peer 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.
Law enforcement agencies framed the operation as part of efforts to cut off routes used to move illicit funds. DI Ross Flay of SWROCU said unregistered traders can enable criminals to “move, disguise and spend illegal money.”
The action builds on earlier enforcement steps. The FCA has prosecuted operators of illegal crypto ATMs for several years and worked with police to arrest individuals linked to an unregistered crypto exchange in 2024.
Last year, it also took action against offshore platform HTX over unlawful financial promotions and expanded oversight of social media figures promoting high-risk crypto products.
The crackdown comes as the UK prepares to roll out a broader regulatory regime for crypto by October 2027, with a licensing window expected to open in September 2026. The current framework focuses mainly on anti-money laundering compliance and financial promotions.
The FCA urged consumers to check whether firms are registered using its online register. It also warned that users dealing with unregistered P2P traders lack access to the Financial Ombudsman Service or compensation schemes and may face risks if transactions involve stolen funds.
coindesk.com
