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UK’s FCA Raids Multiple Sites Suspected of Illegal P2P Crypto Operations

UK’s FCA Raids Multiple Sites Suspected of Illegal P2P Crypto Operations

Authorities investigate suspected unregulated crypto networks across eight locations.

Written by Rahul Dhingra, Edited by David Delima | Updated: 23 April 2026 18:56 IST

UK’s FCA Raids Multiple Sites Suspected of Illegal P2P Crypto Operations

Photo Credit: Unsplash/Kanchanara

Officials inspect suspected crypto networks linked to illicit transactions

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Highlights

Multiple locations searched as scrutiny into crypto networks expands
Unregistered P2P activity flagged as a potential money laundering risk
Enforcement agencies coordinate to gather evidence and halt operations

The UK's Financial Conduct Authority (FCA) has busted multiple crypto trading sites that were suspected of running illegal peer-to-peer (P2P) operations. The UK-based financial watchdog said that it was assisted by HM Revenue & Customs and the South West Regional Organised Crime Unit to inspect eight locations that were linked to illegal crypto trading. Officials gave these illicit operators cease-and-desist notices on the spot, telling them to stop what they were doing right away while they collected evidence for ongoing criminal investigations.

What Is P2P Crypto Trading and Why FCA Is Cracking It Down

Peer-to-peer trading refers to the direct exchange of coins between two traders without any involvement of a centralised third party. It is a process that bypasses centralised exchanges and works as a decentralised model. Such trading requires registration under anti-money laundering rules in the UK. The FCA has also clarified that no peer-to-peer trading platforms or individual traders are currently registered with authorised regulators.

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In a press release by the FCA, Steve Smart, executive director of enforcement and market oversight at the FCA, said, “Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk. We will use our powers and work with partners to disrupt them. Consumers should protect themselves by only dealing with firms registered with the FCA and by remembering that crypto remains a high-risk investment.”

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DI Ross Flay of SWROCU further added, “As law enforcement, we want to stop these traders providing a route for criminals to move, disguise, and spend illegal money.”

Earlier this month, the UK's National Crime Agency (NCA), in cooperation with the US Secret Service, the Ontario Provincial Police, and the Ontario Securities Commission, called Operation Atlantic managed to strike a critical blow against phishing scams, freezing $12 million (roughly Rs. 111 crore) tied to these funds. The NCA also added that it identified more than $45 million (roughly Rs. 423 crore) stolen in cryptocurrency fraud schemes. Operation Atlantic had further categorised these scams as 'approval phishing' scams.

FCA had also intensified its regulatory scrutiny in the crypto sector last year in October 2025, when the regulator issued warnings to unregistered crypto exchanges. The FCA targeted exchanges such as Elite Bit Markets, Nexure Gainbit, Plux Crypto, and HTX. The UK watchdog ensured that legal action will be taken against firms that continue to serve UK residents without proper registration.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Cryptocurrency, Crypto Regulation, crypto trading

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More