FCA Raids London Crypto
- UK authorities carried out multi‑agency raids in London targeting peer‑to‑peer crypto traders operating without registration. - The FCA reportedly found zero legally registered P2P crypto traders during the operation. - The raids mark a shift from warnings to on‑the‑ground enforcement as Britain tightens crypto perimeter supervision (ambcrypto.com).
Britain’s Financial Conduct Authority raided eight London sites on April 22 in its first coordinated crackdown on illegal peer-to-peer crypto trading. (disruptionbanking.com) The Financial Conduct Authority worked with His Majesty’s Revenue and Customs and the South West Regional Organised Crime Unit, then handed cease-and-desist letters to traders at each site. The regulator said evidence gathered during the inspections is now supporting several criminal investigations. (disruptionbanking.com) Peer-to-peer trading means two people buy and sell crypto directly instead of using a centralized exchange. In Britain, that activity requires registration under the Money Laundering Regulations, and the Financial Conduct Authority says there are currently no registered peer-to-peer crypto traders or platforms operating in the country. (fca.org.uk) (disruptionbanking.com) The immediate concern for investigators is money laundering. Detective Inspector Ross Flay of the South West Regional Organised Crime Unit said officers are trying to stop unregistered traders from giving criminals a way to “move, disguise and spend illegal money.” (disruptionbanking.com) The raids land as Britain is building a broader crypto rulebook in stages. The Financial Conduct Authority said on April 15 that crypto firms will be able to start applying for authorisation from September 30, 2026, with the wider UK crypto regime due to take effect in October 2027. (fca.org.uk) Until that regime arrives, crypto in the UK remains only partly regulated, mainly through anti-money-laundering supervision and financial-promotion rules. That leaves registration and enforcement as the main tools available when authorities think a crypto business is operating illegally. (fca.org.uk 1) (fca.org.uk 2) The operation also fits a wider multi-agency push against crypto-linked crime in Britain. In January, the National Crime Agency said its Crypto Cash Fusion Cell had brought together the National Crime Agency, the Metropolitan Police, His Majesty’s Revenue and Customs, the Financial Conduct Authority, the City of London Police and sanctions officials to target criminal funds moving through cryptoassets. (nationalcrimeagency.gov.uk) The Financial Conduct Authority has used similar tactics before against other unregistered crypto businesses, including illegal crypto ATMs and, in June 2024, an investigation with the Metropolitan Police into a suspected illegal cryptoasset exchange. The London raids show that approach now extending to traders who operate directly between buyers and sellers. (disruptionbanking.com)
