The UK Financial Conduct Authority (FCA) announced on April 22 that its enforcement team, together with the UK’s HM Revenue and Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), carried out raids on eight London venues suspected of carrying out illegal peer-to-peer (P2P) cryptocurrency transactions on April 21, and issued stop orders at each location. The FCA confirmed that there are currently no legally registered P2P crypto platforms operating anywhere within the UK.
Raid Details: Legal Basis and Joint Multi-Agency Enforcement
According to the FCA’s April 22 official statement, this raid was carried out under the Anti-Money Laundering, Counter-Terrorism Financing and Transfer of Funds Regulations 2017, marking the FCA’s first joint enforcement action with the tax and organized crime divisions against the P2P crypto trading industry.
In the statement, Steve Smart, Executive Director of Enforcement and Market Oversight at the FCA, said: “Unregistered peer-to-peer cryptoasset traders operating in the UK are illegal, and they pose a risk of financial crime. We will use all our powers, and we will tackle this type of conduct together with our partners.”
In the statement, SWROCU Detective Superintendent Ross Flay said: “By working with our FCA and HMRC colleagues, we can effectively target and disrupt unregistered P2P cryptoasset trading that is being carried out illegally. As an enforcement agency, we want to stop these traders from providing a route for criminals to move, disguise, and use illegal funds.”
No Legitimately Registered P2P Crypto Traders Nationwide in the UK
According to the FCA’s April 22 statement, the FCA currently has not registered any legally operating P2P cryptocurrency traders or platforms within the UK, meaning that all P2P cryptocurrency trading activity in the UK is unlicensed. The FCA said that this joint raid is its first on-the-ground enforcement action targeting the P2P crypto trading industry after many years; previously, the FCA mainly responded to unregistered cryptoasset business by issuing warning notices.
Latest Developments in the UK Crypto Regulatory Framework
According to the FCA’s announcement, earlier this month the FCA launched a consultation on regulated cryptoasset activities, covering areas such as stablecoin issuance, trading platforms, custody, and staking. Crypto companies may begin applying for authorization starting in September 2026, and the full regulatory framework is planned to take effect in October 2027. The consultation deadline for this round is June 3, 2026. The final rules are expected to be published in the summer of 2026; DeFi and distributed ledger flexibility rules will be discussed in a separate consultation later this year.
Frequently Asked Questions
What are the timing, location, and enforcement basis for this FCA raid in the UK?
According to the FCA’s April 22 statement, the raid began on April 21 (Tuesday) in the morning. The targets were eight London premises suspected of illegal P2P cryptoasset trading, based on the Anti-Money Laundering, Counter-Terrorism Financing and Transfer of Funds Regulations 2017, with joint agencies including HMRC and SWROCU.
Does the UK currently have any legally registered P2P cryptocurrency traders?
According to the FCA’s April 22 statement, the FCA currently has not registered any legally operating P2P cryptocurrency traders or platforms within the UK, meaning all P2P cryptocurrency trading activity in the UK is unlicensed.
When will the UK’s full crypto regulatory framework take effect?
According to the FCA announcement, crypto companies may apply for authorization starting in September 2026, and the full regulatory framework is planned to take effect in October 2027. The FCA’s cryptoasset regulatory consultation deadline is June 3, 2026, and the final rules are expected to be published in the summer of 2026.
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