The UK Financial Conduct Authority said it inspected three commercial premises in London on September 10 alongside HM Revenue & Customs and the Metropolitan Police over suspected illegal peer-to-peer crypto trading, and issued cease-and-desist notices to the businesses involved.

The regulator framed the action as part of its wider effort to police crypto businesses operating outside the UK’s legal framework. According to the FCA, the targeted firms were suspected of carrying on unregistered crypto activity through peer-to-peer trading, an area regulators have increasingly linked to anti-money-laundering risk.

The operation was carried out with HMRC and the Metropolitan Police, pointing to a coordinated enforcement approach rather than a standalone supervisory check. Reuters reported the action was taken under the Money Laundering, Terrorist Financing and Transfer of Funds regulations, which remain the main basis for crypto oversight in the UK before the broader regime takes effect.

The FCA did not disclose the names of the businesses, the scale of the suspected activity, or whether the inspections are tied to criminal investigations. It also did not say whether the premises were connected to any specific platform, trading network, or equipment type.

The move comes as the UK prepares to open its crypto authorization application period on September 30. FCA materials indicate the new regime is expected to come into force in October 2027. Until then, crypto in the UK remains regulated mainly through anti-money-laundering registration requirements and financial promotion rules.

Why It Matters

This enforcement action matters because it shows the UK is using its existing powers now, rather than waiting for the full crypto regime to begin. For the industry, that shifts regulatory attention toward how trading activity is conducted and whether firms are registered, especially in channels that sit outside mainstream exchange infrastructure.

It also adds practical context to the UK’s policy rollout. As the authorization window opens, the message to market participants is that operating without registration may face faster intervention, while compliant firms could gain a clearer advantage as regulators tighten oversight of off-exchange crypto activity.