FCA steps up crypto enforcement against illegal London P2P trading sites

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FCA crypto enforcement London

Highlights

The FCA, HM Revenue & Customs, and Metropolitan Police took enforcement action against three illegal peer-to-peer crypto trading sites in London and issued cease-and-desist letters to operators.
There are no FCA-registered peer-to-peer crypto businesses in the UK, and full cryptocurrency regulatory framework takes effect on Oct. 25, 2027, with applications open Sept. 30 to Feb. 28, 2027.
Regulatory focus shifts from warnings to active disruption, raising criminal liability risks for unregistered P2P crypto operators as authorities intensify enforcement.

London crackdown ahead of crypto regime rollout

As reported by CoinDesk, citing the Financial Conduct Authority, the regulator, working with HM Revenue & Customs and the Metropolitan Police, takes action against three illegal peer-to-peer crypto trading locations in London and issues cease-and-desist letters ordering traders to stop operating.

Peer-to-peer trading allows individuals to buy and sell crypto directly with each other, but such activity must be legally registered in the UK when conducted by way of business. The FCA says there are currently no FCA-registered peer-to-peer crypto businesses operating in the UK, and adds that operators outside its regime avoid controls designed to detect and prevent money laundering.

Britain’s cryptocurrency framework takes full effect on Oct. 25, 2027. Firms may apply for FCA approval from Sept. 30 through Feb. 28, 2027.

Enforcement shift raises pressure on crypto firms

Caroline Black, a consultant at Gherson Solicitors LLP, says the operation signals that the era of light-touch crypto regulation in the UK is ending. She says the second coordinated enforcement operation in six months confirms a shift from warnings to active disruption of unregistered P2P crypto businesses, with criminal liability a live risk for operators trading without proper registration.

Aditya Mittal, managing principal at Capco, says firms should prioritize understanding which parts of their business fall within the scope of the UK’s incoming cryptoasset regime. His comments follow FCA guidance issued earlier in the week that clarifies how the regulatory perimeter will apply.

Our earlier article on the U.S. Digital Asset Tax Certainty Act outlined how lawmakers are trying to modernize the tax treatment of cryptocurrencies through clearer rules for trading, mining, and staking. It explained proposed changes such as extending safe-harbor and mark-to-market options, applying anti-abuse rules like wash sales to digital assets, and easing reporting frictions created by high volumes of small transactions. The piece also highlighted the broader push to reduce compliance uncertainty for a rapidly growing market while strengthening oversight through more explicit standards.

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