Britain has stepped up enforcement against unregistered cryptocurrency businesses, with the Financial Conduct Authority (FCA), tax authorities and the Metropolitan Police targeting operators at three London locations.
Traders at the sites were ordered to stop running illegal peer-to-peer cryptocurrency businesses as authorities signalled a tougher approach ahead of the country’s new regulatory framework.
The FCA said there are currently no peer-to-peer cryptocurrency businesses registered in Britain. That means operators working outside the regulator’s regime are not subject to safeguards designed to identify and prevent money laundering.
The joint action comes alongside detailed regulatory guidance issued to cryptocurrency firms before the full framework comes into force on 25 October 2027.
Firms will be able to apply for approval from the FCA between 30 September and 28 February 2027. The application period will therefore take place before the new framework becomes fully operational.
The FCA’s involvement means businesses offering peer-to-peer cryptocurrency services face scrutiny under the regulator’s rules, while unregistered operators remain outside the formal system.
Peer-to-peer platforms allow users to trade cryptocurrency directly with one another rather than through a conventional intermediary. The FCA’s warning indicates that businesses providing such services in Britain cannot continue operating without the required registration.
The enforcement operation reflects a move away from the previous “light-touch” approach to the sector, with financial, tax and policing authorities working together to address activity they regard as illegal.
The FCA has not identified the three London locations or provided further details about the traders involved. It said the businesses were ordered to stop operating because they were not registered under the existing regulatory arrangements.
The action precedes the wider implementation of Britain’s cryptocurrency rules in 2027. Firms seeking to operate within the new system will need to submit applications during the specified window and obtain FCA approval.
