UK signals end of 'light-touch' era with multi-agency raid on peer-to-peer crypto hubs

The U.K.'s Financial Conduct Authority said it conducted coordinated operations with HM Revenue & Customs and the Metropolitan Police to disrupt three London locations where traders were running peer-to-peer (P2P) cryptocurrency businesses without registration. The regulator issued cease-and-desist letters at the premises, instructing operators to stop participating in the unregistered activity. The FCA noted that there are currently no P2P crypto businesses registered in the U.K., and said operators who remain outside the registration regime avoid controls intended to detect and prevent money laundering. The agency's statement framed the action as part of stepped-up enforcement against unregistered crypto service providers. Legal and industry advisers reacted to the raids as a signal of a tougher posture from the watchdog. Caroline Black, a consultant at Gherson Solicitors LLP, described the operation as evidence that the FCA is moving from issuing warnings to actively disrupting unregistered P2P crypto businesses, and warned criminal liability is a live risk for operators trading without proper registration. Aditya Mittal, managing principal at consultancy Capco, urged firms to review which parts of their operations fall within the scope of incoming FCA rules following recent guidance. The operations come as the U.K. prepares to bring its cryptoasset regulatory framework fully into force on Oct. 25, 2027. The FCA will accept applications for approval from Sept. 30, 2026 until Feb. 28, 2027. Recent FCA guidance clarified which activities — including issuing qualifying stablecoins, operating exchanges, dealing and coordinating deals, safeguarding digital assets and staking — will require approval under the incoming regime.