UK FCA Raids 8 Sites in First P2P Crypto Crackdown

The United Kingdom's Financial Conduct Authority conducted its first coordinated crackdown on illegal peer-to-peer cryptocurrency trading on April 22, targeting eight premises across London in a joint operation with His Majesty's Revenue and Customs and the South West Regional Organised Crime Unit. Officials issued cease-and-desist notices at each location and seized evidence to support ongoing criminal investigations into potential money laundering and counter-terrorist financing violations.

The raids focused on sites suspected of facilitating direct cryptocurrency exchanges between buyers and sellers without the required regulatory registration or anti-money laundering controls. Under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, peer-to-peer providers are classified as cryptoasset exchange providers and must register with the FCA before operating in the UK. The regulator confirmed that no peer-to-peer crypto traders or platforms are currently registered, making all such venues operating without authorization illegal. These informal setups often involve cash-to-crypto transactions with limited identity verification, creating vulnerabilities...