The UK's Financial Conduct Authority (FCA) has carried out a second round of coordinated operations against peer-to-peer (P2P) crypto traders in London, with officers visiting three premises in the capital alongside HM Revenue & Customs (HMRC) and the Metropolitan Police.

According to a press release from the regulator, the joint action took place on September 10 under the UK's 2017 money laundering regulations. Officers issued cease and desist letters at all three locations, ordering the suspected illegal businesses to stop operating. The September sweep follows a first round in April, evidence from which the FCA says is now supporting criminal investigations.

In a post on X, the regulator confirmed the operation:

We targeted 3 premises suspected of illegal peer-to-peer crypto trading by individuals operating by way of business in the UK, in a joint operation with @HMRCgovuk and @metpoliceuk . These unregistered traders can provide a route for criminals to move and launder illicit funds,… pic.twitter.com/TOqaqkyG4G

— Financial Conduct Authority (@TheFCA) September 17, 2026

Under UK rules, anyone buying and selling crypto directly with others by way of business must be registered with the regulator. That direct dealing is the defining feature of P2P trading, which takes place between counterparties rather than through a centralized exchange, and the registration requirement applies only to those operating as a business — not to occasional trades between private individuals. According to the FCA, there are currently no registered P2P crypto businesses operating anywhere in Britain. Every such operation in the country is therefore unregistered by definition — a position that makes enforcement a question of finding these businesses rather than distinguishing the compliant from the rest.

FCA vs P2P

Unregistered traders sit outside the anti-money laundering controls that registration would impose — obligations such as customer due diligence and transaction monitoring — the FCA said in its announcement, which makes them a route for moving and laundering criminal funds.

"Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them," said Steve Smart, the FCA's executive director of enforcement and market oversight.

Detective Sergeant Sathish Alalasundaram of the Metropolitan Police pointed to the practical difficulties involved. The complexity of crypto and "the speed at which funds can be moved across jurisdictions presents ongoing challenges for those investigating," he said, adding that the force is adapting its disruption tactics as criminals adapt theirs.

The FCA has prosecuted in this area before. In one case, it secured a four-year prison sentence for Olumide Osunkoya over an unlawful crypto ATM network — the first sentence of its kind in the UK — and it supported the arrest of two people suspected of running an illegal exchange.

Crypto remains largely unregulated in Britain aside from money laundering rules and financial promotions rules, which is why these operations run under 2017 legislation rather than anything crypto-specific. That is set to change on October 25, 2027, when the FCA's new regime takes effect, with applications for authorization opening on September 30 — the first step for firms wanting to operate under the new regime.