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      UK Regulators Crack Down on Illegal Peer-to-Peer Crypto Trading in London

      On September 10, 2026, three businesses in London were issued cease-and-desist orders as part of a coordinated enforcement action by the UK's Financial Conduct Authority (FCA), HM Revenue & Customs (HMRC), and the Metropolitan Police Service. This operation is the second of its kind this year, following a similar crackdown in April that targeted eight locations and has led to ongoing criminal investigations.

      The FCA has emphasized that all businesses facilitating peer-to-peer (P2P) crypto transactions must register under anti-money laundering regulations, a requirement established in early 2020. Currently, no P2P crypto businesses are registered with the FCA, highlighting significant compliance issues within this sector. Steve Smart, the FCA's executive director of enforcement, stated that those involved in unregistered P2P operations should anticipate increased scrutiny from regulators.

      The lack of anti-money laundering controls in P2P trading makes these operations susceptible to misuse for laundering illicit funds and potentially financing terrorism. The involvement of multiple regulatory agencies in these enforcement actions indicates a serious concern regarding the underground P2P market in the UK, which has prompted dedicated resources to address the issue. As the UK continues to develop a comprehensive regulatory framework for digital assets, expected by 2027, these enforcement actions reflect the urgent need to address compliance and security risks in the crypto space.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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