The U.K.’s Financial Conduct Authority (FCA), working alongside HM Revenue & Customs (HMRC) and London’s Metropolitan Police, targeted traders at three London locations to shut down illegal peer-to-peer cryptocurrency businesses.
During the coordinated action, the financial watchdog issued cease-and-desist letters requiring traders to halt participation in unauthorized cryptocurrency operations. Because peer-to-peer trading involves individuals buying and selling directly with each other, it requires legal registration in the U.K.
According to the FCA, there are currently no registered peer-to-peer crypto businesses operating in Britain. The agency noted that operators outside its registration regime evade safeguards established to detect and prevent money laundering.
Legal experts view the enforcement as a sign that the U.K.'s era of light-touch crypto regulation is concluding. Caroline Black, a consultant at Gherson Solicitors LLP, stated that the operation confirms a shift from warnings to active disruption of unregistered businesses, introducing live criminal liability risks for operators trading without proper registration.
The enforcement activity coincides with detailed regulatory guidance issued by the FCA regarding the upcoming U.K. cryptoasset regime. Aditya Mittal, managing principal at Capco, advised firms to prioritize understanding which parts of their business fall within the regulatory scope.
The guidance outlines rules for issuing qualifying stablecoins, operating crypto exchanges, dealing and coordinating deals, safeguarding digital assets, and staking. The application window for firms seeking FCA approval opens on Sept. 30 and runs through Feb. 28, 2027, ahead of the full framework taking effect on Oct. 25, 2027.
