London police, customs and the FCA raided eight homes last week, seizing evidence of unregistered peer‑to‑peer crypto trading. The operation, the watchdog’s first joint raid, followed cease‑and‑desist letters sent to each site. By targeting informal exchanges, regulators aim to clamp down on illicit markets before new UK crypto rules take effect in September 2027 for investors and firms alike today.

Since 2020, any service offering crypto trading must register with the FCA to meet money‑laundering rules. Yet the eight sites operated as unregistered peer‑to‑peer markets, a model absent from UK exchanges. Police from five forces and HM Revenue & Customs carried out the raid, but no arrests followed, underscoring the difficulty of policing informal digital asset trades for law enforcement.

Steve Smart, FCA enforcement director, warned that unregistered traders pose a financial‑crime risk and pledged to disrupt them using regulatory powers. Detective Inspector Ross Flay added that stopping these operations cuts a route for criminals to launder and spend illicit funds. The raid signals a tightening grip on crypto markets as the UK prepares for tighter regulation by London's authorities.