UK agencies target suspected illegal peer-to-peer crypto trading in London

The UK Financial Conduct Authority, HM Revenue & Customs and the Metropolitan Police Service targeted three London premises suspected of illegal peer-to-peer crypto trading on September 10, 2026.

The action resulted in cease-and-desist letters, according to the FCA. It was carried out under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.

The FCA said that no peer-to-peer crypto businesses are currently registered with the regulator in the UK.

The enforcement activity came shortly before the FCA published further guidance for firms ahead of a new UK cryptoasset regulatory regime.

Three premises targeted in joint operation

The FCA said its operation with HMRC and the Metropolitan Police focused on three London locations suspected of conducting illegal peer-to-peer crypto trading. The regulator issued cease-and-desist letters following the action.

The stated basis for the operation was the UK’s Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. The FCA did not identify the premises in the supplied evidence.

The regulator’s statement that no peer-to-peer crypto businesses are currently FCA-registered places the activity under increased scrutiny. The operation is a verified enforcement action; broader characterizations of a shift away from a “light-touch” approach remain interpretation rather than an FCA finding.

FCA sets out perimeter guidance for incoming regime

On September 16, the FCA published guidance explaining how the new cryptoasset regime will apply. The material addresses stablecoin issuance, cryptoasset trading platforms, dealing and arranging, safeguarding, and staking.

The guidance is intended to help firms determine whether their activities fall within the regulatory perimeter and what preparations may be required before the new framework starts.

The FCA said the regime is due to come into force on October 25, 2027. Firms seeking transitional arrangements can apply from September 30, 2026, through February 28, 2027.

• Guidance covers stablecoin issuance.
• It addresses cryptoasset trading platforms, dealing and arranging.
• Safeguarding and staking are also within the published scope.

Compliance timetable comes into focus

The joint operation and the newly published guidance put immediate attention on the distinction between crypto activities that are permitted, registered or otherwise regulated and those suspected of operating outside applicable requirements.

For businesses active in the UK market, the September 30 opening of the transitional-arrangements application window is the next stated date in the FCA timetable. The full regime is scheduled to take effect in October 2027.

The development follows other operational changes across the digital-asset sector, including the planned withdrawal of exchange services by CoinEx after nine years.

Continue reading: planned withdrawal of exchange services by CoinEx after nine years on BTCNews.

Continue reading: Bitcoin Core 31.1 release on BTCNews.

Sources

• Financial Conduct Authority: FCA and partners continues crackdown on illegal crypto trading
• Financial Conduct Authority: Crypto firms get guidance on how the new regime applies
• Financial Conduct Authority: PS26/18: Cryptoasset perimeter guidance
• CoinDesk: UK signals end of 'light-touch' era with multi-agency raid on peer-to-peer crypto hubs

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