FCA Raids 8 London Crypto Sites: Unregistered Trading Could Mean Lost Money!

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UK watchdog raids eight London sites over illegal P2P crypto trading

The UK’s financial watchdog, the FCA, searched eight locations in London connected to suspected unlawful peer-to-peer cryptocurrency trading. They issued orders to halt activity and are intensifying their efforts to regulate unregistered crypto platforms.

Summary

  • The UK Financial Conduct Authority raided eight London locations tied to alleged illegal peer-to-peer crypto trading.
  • Stop notices were issued as part of multiple anti-money laundering and counter-terrorist financing probes.
  • No peer-to-peer crypto traders are currently registered with the FCA in the UK.

On April 22nd, the UK’s Financial Conduct Authority (FCA) carried out raids at eight locations in London. They suspect these businesses were operating illegal cryptocurrency trading platforms, and worked with tax authorities and the Metropolitan Police in a coordinated effort, Reuters reports.

Authorities issued stop notices at each location, telling anyone running unregistered cryptocurrency businesses to immediately halt operations. This action is happening while investigations continue into possible money laundering and terrorism financing violations.

The FCA announced that recent searches were connected to investigations into money laundering and funding of terrorism. They emphasized that any business offering cryptoasset exchange services in the UK must be registered to operate legally.

Currently, no companies offering direct cryptocurrency trading between individuals are registered with the FCA in the UK. This means any platform facilitating these trades to UK customers is operating without official permission.

Crackdown on unregistered crypto flows

This recent enforcement action follows the FCA’s ongoing efforts to crack down on unregistered cryptocurrency ATMs and exchanges. They’ve previously taken action against at least 26 illegal crypto machines nationwide.

Earlier in 2024, the FCA and Metropolitan Police arrested two people in London suspected of operating an illegal crypto exchange. Authorities believe this exchange processed over $1.25 billion in unregistered cryptocurrency over several years, as reported by the FCA and Sky News.

As a researcher following the regulatory landscape, I’ve been paying close attention to the FCA’s recent statements. Therese Chambers, their Executive Director of Enforcement and Market Oversight, has made it very clear: any crypto business operating in the UK without proper registration is breaking the law. She’s also assured the public that the FCA is committed to taking strong action against these firms and will use all available resources to prevent illegal operations.

As a researcher tracking crypto regulation, I’ve found the FCA has been extremely strict with registration applications. In recent years, they’ve rejected around 90% of crypto firms applying, primarily due to concerns about anti-money laundering practices and preventing fraud. They’ve only approved a very small number of applicants under their more rigorous rules.

The recent enforcement actions in London are part of a broader effort by UK authorities to crack down on crypto companies. These companies are either failing to register properly or illegally advertising their services to people in the UK, and authorities have recently taken some of them to court for breaking financial advertising rules.

The UK’s financial regulator, the FCA, has warned people investing in crypto that they could lose all their money. They’ve also made it clear that trading crypto directly with others (peer-to-peer) without going through a registered platform offers no protection. As a result, the FCA is telling crypto platforms operating in the UK to register with them or face closure.

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2026-04-22 15:53