UK FCA and Police Issue Cease-and-Desist Notices to London P2P Crypto Traders

The UK Financial Conduct Authority (FCA), alongside the Metropolitan Police Service and HM Revenue & Customs (HMRC), targeted three London sites suspected of running illegal peer-to-peer crypto operations on Sept. 10, 2026 ¹. Authorities handed cease-and-desist notices to all three locations, ordering the immediate suspension of suspected unauthorized business activities ¹.

Under British law, individuals or entities that buy and sell cryptoassets directly with counterparties by way of business must secure anti-money laundering registration with the financial regulator ¹. The FCA confirmed that there are currently no registered peer-to-peer crypto businesses operating in the UK ¹. Regulators warned that operating outside these supervisory frameworks removes standard anti-money laundering checks and enables criminals to transfer illicit capital ¹. Steve Smart, the FCA's executive director of enforcement and market oversight, stated that unregistered operators should expect regulatory scrutiny as joint task forces track peer-to-peer volumes ¹.

Broadening UK Enforcement Net

The operation was conducted under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 ¹. The crackdown expands on an enforcement sweep conducted in April 2026, with authorities leveraging evidence collected during those earlier visits to build active criminal cases and pursue enforcement actions ¹. The Metropolitan Police noted that tracking cross-border digital asset flows remains a central challenge, prompting law enforcement to adjust tactical interventions against informal dealer networks ¹.

The coordinated action aligns with prior UK crackdowns against unauthorized physical crypto infrastructure, such as unregistered automated teller machines and unlicensed digital currency brokerages ¹. Cryptoassets remain outside broader financial services regulation in the UK, adhering strictly to anti-money laundering rules and marketing restrictions ahead of an expanded regulatory regime planned for October 2027 ¹. At the time of writing, digital asset markets showed mild gains, with $BTC trading around $84,420 and $ETH holding near $2,687.