--- title: "UK FCA and Police Issue Cease-and-Desist Notices to London P2P Crypto Traders" description: "Regulators targeted three sites operating without registration, confirming zero peer-to-peer crypto firms are currently authorized in Britain." url: https://basisdesk.news/news/uk-fca-crackdown-london-peer-to-peer-crypto-trading published: 2026-09-27T17:34:30.893Z modified: 2026-09-27T17:34:30.893Z section: Regulation & Policy author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: bearish tickers: [BTC, ETH] tags: [UK FCA, Metropolitan Police, P2P Trading, Enforcement, AML Regulations] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # UK FCA and Police Issue Cease-and-Desist Notices to London P2P Crypto Traders Regulators targeted three sites operating without registration, confirming zero peer-to-peer crypto firms are currently authorized in Britain. ## Key points - The FCA, HMRC, and Metropolitan Police served cease-and-desist letters to three London premises suspected of illegal P2P crypto trading on Sept. 10, 2026. - The FCA confirmed that zero peer-to-peer cryptocurrency businesses currently hold regulatory registration in the United Kingdom. - The action was executed under British 2017 money laundering regulations, building upon evidence collected during a similar April 2026 sweep. ## Editorial remark - **Context:** UK authorities have steadily constrained informal digital asset conduits since introducing mandatory AML registration in 2020. The September enforcement follows an April operation aimed at clamping down on informal off-ramp venues operating outside supervisory oversight. - **Impact:** Unregistered OTC and commercial peer-to-peer dealers face elevated legal exposure and asset seizures across the UK. Institutional and retail participants operating commercially must register or risk criminal prosecution. - **Watch:** The integration of broader digital asset activity into the UK financial regulatory perimeter scheduled for October 2027, as well as formal charging decisions stemming from the September raids. 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. ## FAQ **Can individuals legally trade peer-to-peer crypto in the UK?** Trading crypto directly between individuals is permissible on a personal basis, but anyone operating peer-to-peer trading as a commercial business must obtain registration with the FCA under the 2017 Money Laundering Regulations. **How many peer-to-peer crypto businesses are registered with the FCA?** According to the FCA, there are currently no registered peer-to-peer crypto businesses operating in the United Kingdom. ## Sources 1. [FCA and partners continues crackdown on illegal crypto trading](https://www.fca.org.uk/news/press-releases/fca-and-partners-continues-crackdown-illegal-crypto-trading) — UK FCA News, 2026-09-27 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai