FCA Raids London Premises Over Unregistered Crypto Trading

No peer-to-peer crypto entities are currently registered with the Financial Conduct Authority (FCA), making any commercial activity in the sector a breach of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. Authorities issued cease and desist notices at all targeted locations, signaling a zero-tolerance approach toward firms that bypass mandatory anti-money laundering controls. Steve Smart, the FCA’s executive director of enforcement, warned that unregistered operators are now being actively tracked.

The September operation follows a series of high-profile enforcement actions, including the April inspection of eight London sites and the July 2025 seizure of seven crypto ATMs in the southwest of the city. These investigations often rely on evidence gathered during raids to support criminal proceedings, such as the case of Olumide Osunkoya, who became the first person in the UK to receive a prison sentence for running an illegal crypto ATM network. Detective Sergeant Sathish Alalasundaram noted that while the speed and borderless nature of digital assets complicate investigations, law enforcement agencies are rapidly adapting their disruption methods.

Looking ahead, the regulatory landscape faces a major shift. While the FCA currently focuses on anti-money laundering compliance, a comprehensive authorization framework is set to become mandatory by October 25, 2027. Applications for this new regime open in September 2026, requiring firms to move beyond basic registration and meet stringent standards for market integrity, financial resilience, and consumer protection. Existing registrants will not receive automatic approval, forcing companies to re-evaluate their operations before the new rules take effect.