FCA issues cease-and-desist orders at three London crypto trading sites in second crackdown of 2026
FCA issues cease-and-desist orders at three London crypto trading sites in second crackdown of 2026 #
The Financial Conduct Authority raided three London premises on 10 September 2026, suspecting each of running an illegal peer-to-peer cryptocurrency trading operation, and issued cease-and-desist orders at all three sites.
The operation was carried out with HM Revenue & Customs and the Metropolitan Police Service. It is the second such multi-agency action this year. A similar sweep targeting illegal P2P crypto traders in London took place in April. The FCA said evidence gathered during that operation is now supporting active criminal investigations and further enforcement action.
Peer-to-peer crypto trading, in which individuals buy and sell digital assets directly with one another, requires FCA registration when conducted as a business in the UK. The regulator said there are currently no FCA-registered peer-to-peer crypto businesses operating in the country, making every commercial P2P operation unregistered and illegal under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
The FCA said unregistered P2P operators present a significant financial crime risk because they can serve as conduits for moving and laundering illicit funds outside the regulated system. No arrests were made in connection with the 10 September operation.
Metropolitan Police Detective Sergeant Sathish Alalasundaram said pursuing crypto-related crimes is difficult because funds move quickly across jurisdictions and the technical complexity of cryptocurrency creates ongoing challenges for investigators. He said the force continues to adapt its tactics as criminals change methods.
The FCA was involved in the conviction of Olumide Osunkoya, who was sentenced to four years in prison for operating an unregistered crypto ATM network between December 2021 and September 2023, the first such conviction in the UK. That network processed an estimated £2.6 million in transactions over its lifetime.
The UK plans to bring a full statutory crypto regulatory framework into force in October 2027. Until then, compliance obligations for crypto businesses are limited to anti-money laundering rules and financial promotion standards. FCA enforcement activity in the sector has increased ahead of that deadline.
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