UK regulator FCA raided eight London sites over alleged illegal P2P crypto trading, issuing stop notices and escalating its wider crackdown on unregistered platforms.

According to Reuters, the UK’s Financial Conduct Authority (FCA) has raided eight locations across London suspected of running illegal peer-to-peer cryptocurrency trading operations, in a coordinated sweep conducted on April 22 with tax authorities and the Metropolitan Police.

Stop notices were issued at every site, effectively ordering the alleged operators to cease all unregistered cryptoasset activity while multiple criminal investigations into potential anti-money laundering (AML) and counter-terrorist financing breaches continue.

In a statement, the FCA said the raids were part of “ongoing criminal investigations under the Money Laundering Regulations 2017 and counter-terrorist financing legislation,” underscoring that cryptoasset exchange providers must be registered to operate legally in the UK.

Notably, there are currently zero registered peer-to-peer crypto trading businesses with the FCA, meaning any P2P platform offering UK-facing services is doing so without formal authorization.

The latest action builds on previous FCA operations that have targeted unregistered crypto ATMs and unlicensed exchanges, including raids that disrupted at least 26 illegal crypto machines across the country.
In 2024, the regulator and Metropolitan Police arrested two individuals in London suspected of running an unlicensed cryptoasset exchange that allegedly processed more than $1.25 billion worth of unregistered crypto over several years, according to the FCA and Sky News.

Therese Chambers, the FCA’s Executive Director of Enforcement and Market Oversight, has warned that “crypto businesses operating without registration are illegal” and pledged that the watchdog “will do everything in our power to stop crypto firms from operating illegally in the UK.”

The FCA has also rejected roughly 90% of crypto firms seeking registration in recent years due to AML and fraud-prevention failures, approving only a small fraction of applicants under its tightened regime.

The London raids come as UK authorities step up enforcement against crypto platforms that either ignore registration rules or promote services illegally to local investors, including recent court actions over unlawful financial promotions.

With the FCA warning consumers they should be prepared to lose all their money in crypto and emphasizing that unregistered P2P trading offers no regulatory protection, the message to UK-facing platforms is increasingly blunt: register, or risk being shut down.