UK Cracks Down on Illegal P2P Cryptocurrency Trading

UK's FCA conducted raids in London over illegal P2P crypto trading suspicions.

The UK’s Financial Conduct Authority (FCA) conducted raids at eight locations in London over suspicions of illegal P2P trading of digital assets.

The operation also involved the Tax Authority and the police. Law enforcement issued orders for operators to cease activities immediately and collected evidence for criminal investigations.

Steve Smart, head of the regulator’s enforcement division, stated that to date, no P2P trader or platform is registered with the FCA. Conducting such activities in the country requires registration in accordance with anti-money laundering rules.

The agency will continue to clamp down on such services in collaboration with partners, he emphasized. The police supported this stance. Detective Ross Flay noted that P2P traders could assist criminals in laundering money.

Cryptocurrency Regulation in the UK

According to Thomas Cattee, a lawyer at Gherson Solicitors LLP, the FCA has decided not to wait for comprehensive regulation to be established in the country and is already expanding its powers.

The FCA’s latest crypto consultation will shape UK regulation ahead of 2027. Find out what it means for businesses and how to prepare.
>> https://t.co/roI7BLoO5Q#CryptoRegulation #FinancialRegulation #CryptoAssets #Compliance #FinTech #Blockchain pic.twitter.com/w2FimDcSoc

— Gherson Solicitors LLP (@uk_immigration) April 22, 2026

It is expected that UK authorities will approve specific rules for the industry in October 2027. Meanwhile, some activities already require FCA registration, Cattee added.

Since January this year, the UK’s Tax Authority began tracking information about cryptocurrency owners for tax calculation and collection.

In March, the government adopted urgent legislative changes to restrict political donations in digital assets.