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The Financial Conduct Authority (FCA) of the United Kingdom has executed a series of raids targeting platforms suspected of engaging in illegal P2P cryptocurrency trading.
The operations took place at eight organizations in London, in collaboration with the Tax and Customs Authority and the Regional Organized Crime Unit. On-site officials issued orders for immediate cessation of activities and collected evidence for ongoing criminal investigations, according to the regulator’s announcement.
These inspections mark the FCA’s initial operation against P2P trading of digital assets. However, the agency has previously initiated cases against illegal cryptocurrency ATM networks and conducted arrests related to unlicensed exchanges.
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In April, the FCA commenced public consultations regarding the implementation of a regulatory framework for cryptocurrencies, set to take effect in 2027. This regulation will encompass stablecoins, cryptocurrency platforms, asset custody services, and staking. Cryptocurrency firms will be able to apply for licenses starting in September, with full compliance to the new requirements becoming mandatory following the establishment of the entire regulatory framework, which is also expected to be adopted by 2027.
P2P trading enables users to buy and sell digital assets directly with one another, bypassing centralized exchanges. In the UK, such activities must be registered in accordance with anti-money laundering (AML) regulations. Otherwise, they are subject to criminal penalties. According to the agency, currently, no such platform or trader is registered with the FCA.
Experts interviewed by Cointelegraph indicated that the recent raids in the UK reflect a shift in the government’s approach to cryptocurrency regulation.
Authorities no longer view unregistered exchanges and crypto trading platforms as gaps in financial asset legislation. Instead, this is now considered unauthorized regulated activity, and measures similar to those applied in the traditional financial sector will be enforced, according to Slav Demchuk, CEO of the AML compliance verification service AMLBot.com.
Previously, authorities in the US, Canada, and the UK froze approximately $12 million in cryptocurrency wallets, which they believe belong to victims of phishing attacks.
