FCA Cracks Down on Illegal Peer-to-Peer Crypto Trading in London: Action on September 10, Announced September 17

On September 17, 2026, the UK's Financial Conduct Authority (FCA) announced that it had again taken action against illegal peer-to-peer crypto trading in London, working with HM Revenue & Customs (HMRC) and the Metropolitan Police Service. The press release's "Notes to editors" section states that the action itself took place 7 days earlier, on September 10, 2026. The action targeted 3 premises in London suspected of illegal peer-to-peer crypto trading, and all 3 received cease and desist letters requiring them to stop any suspected illegal crypto business. The FCA did not disclose the premises' addresses or the traders' names, and the press release does not say that anyone was arrested, charged or penalized over this action.

This article was checked on September 18, 2026, drawing on the press release for this action, the FCA's press release for a similar action in April this year, and the Firm Checker help page. This site did not use Firm Checker to look up any business, and did not verify the identity of the 3 premises; no hands-on testing was performed. This article explains the UK regulator's enforcement and registration regime; it does not evaluate any business and does not offer investment or legal advice, and it does not speculate about any detail the press releases do not disclose.

What happened: 3 premises received cease and desist letters

The legal basis for this action is the UK's Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (referred to below as MLRs 2017). The FCA states that this action was carried out together with HMRC and the Metropolitan Police Service.

The press release does not describe what kind of premises these 3 were, their addresses, or the identity of their operators, and as far as this action is concerned it does not mention any arrest, charge or penalty — only cease and desist letters. The wording used is "suspected," so this article does not describe it as "3 illegal businesses uncovered."

The FCA states that this action follows on from action it took against illegal peer-to-peer crypto trading businesses in April 2026, and that the evidence gathered then is being used to support criminal investigations and other enforcement action. The FCA's Executive Director of Enforcement and Market Oversight said the FCA continues to track and disrupt illegal crypto activity; a Metropolitan Police Service officer likewise said that the complexity of cryptocurrency and the speed at which funds can move across jurisdictions keep posing challenges for investigators. These are the agencies' own statements, not this article's assessment.

Why this counts as illegal: registration is mandatory, and the number registered is zero

The FCA defines peer-to-peer trading itself in the press release: it is when individuals buy and sell crypto directly with each other, and anyone doing this by way of business in the UK requires appropriate registration. The FCA then explains why: unregistered peer-to-peer crypto traders operating by way of business can provide a route for criminals to move and launder illicit funds, because by operating outside the FCA's registration regime, they avoid the controls designed to detect and prevent money laundering.

The key number is zero. Both this press release and April's state the same sentence: there are currently no FCA-registered peer-to-peer crypto businesses operating in the UK. In other words, as the press releases put it, not one business trading this way by way of business is registered.

The press releases do not state how many crypto businesses overall are registered under MLRs 2017 in the UK; they only state that the peer-to-peer category stands at zero. This article also does not count them itself on the FCA's register, because that register changes at any time, and a count taken at the moment of checking would only be a snapshot, not a fact stated by the press release itself.

The phrase “by way of business”: trading between individuals doesn't need registration

This is the part of the story most likely to be misread. After April's press release, the FCA went back and revised its second paragraph on May 18, 2026; the update note at the top of the page states that the paragraph was changed to read: "Where the activity is carried out by way of business in the UK, it requires appropriate registration. Without registration, that activity is illegal. Peer-to-peer transactions carried out on a personal basis do not require FCA registration." This carve-out is not repeated in the September press release, but the two sentences stating the registration duty are word-for-word identical in both press releases, and both are limited to those acting "by way of business."

In other words, what the FCA is targeting is peer-to-peer crypto trading carried out "by way of business" without registration — not two people occasionally swapping crypto with each other. The press releases do not define a test for "by way of business," such as frequency, amount, or whether the activity is advertised to the public, and this article does not supply that definition on the FCA's behalf; readers who need to judge whether their own situation falls within "by way of business" should separately consult qualified professional advice or the FCA itself.

The following is an editorially constructed example, not a hands-on test: suppose two friends, each holding a different crypto-asset, privately agree to swap once — that is a peer-to-peer trade between individuals, and the FCA's wording does not count it toward the registration duty. But if someone regularly takes cash for crypto from members of the public at a fixed location, that is closer to what the press release calls "by way of business," and if that trader is not registered, they are the kind of target this action was aimed at. This site does not provide a how-to guide for "trading crypto safely in person," and does not make a judgment about any individual case.

How the two actions differ, and the current scope of regulation

This September's action differs from April's in scale and in the police unit involved. April's press release was published on April 22, 2026; that action involved HMRC and the South West Regional Organised Crime Unit (SWROCU) and targeted 8 premises. This September's action still involves HMRC, but the police unit is the Metropolitan Police Service, and it targeted 3 premises. Both actions issued cease and desist letters, and April's action also included on-site inspections; neither press release says that anyone was arrested, charged or penalized over either action.

Both press releases mention the FCA's own enforcement track record, using the word "including" — an example, not a complete list. September's press release cites prosecuting the operator of an unlawful crypto ATM network, and supporting the arrest of 2 individuals suspected of running an illegal crypto exchange; April's press release specifies that the latter took place in June 2024, working with the Metropolitan Police Service.

These two actions could be carried out because the registration requirement under MLRs 2017 is already in force; but the scope of crypto regulation in the UK is itself still expanding. The Notes to editors in this press release state: crypto is a high-risk investment and remains largely unregulated in the UK, except for anti-money laundering and financial promotion, until October 2027. In other words, until October 2027, the basis the FCA can mainly use to enforce against peer-to-peer crypto trading is the MLRs 2017 registration requirement used in this action.

What individuals can do: check registration first, and remember the tool's limits

September's press release gives consumers only one piece of advice: use the FCA's Firm Checker (a business lookup tool) to confirm whether a crypto business is correctly registered. Firm Checker's own help page states that the tool is for checking whether a financial business is authorised by the FCA and has permission to provide the service you want; the FCA also explains on the same page that almost all financial firms in the UK must be authorised or registered by the FCA.

But Firm Checker also states its own limits: the FCA explicitly says the tool cannot confirm whether Financial Services Compensation Scheme or Financial Ombudsman Service protection would definitely apply if something went wrong, and reminds users that it's still up to them to check that a product or service meets their needs. The FCA also explains that using an authorised firm with the correct permissions "won't remove all risk," though it will greatly reduce the risk of harm. Being able to find a registration is not the same as a guarantee of safety.

This approach can be applied in any country: before trading, first confirm what capacity the other party is regulated in (as an individual, or operating by way of business), what registration or permission can be found, and what cannot be found — rather than judging only by whether they have a storefront. This article covers only the UK's situation and does not speculate on whether Taiwan would take similar action; comparing this with Taiwan's current situation would require separately verifying it against Taiwanese primary sources.

2026 Crypto News Roundup: Key Developments in Regulation, Technology and Industry

UK FCA Publishes Final Cryptoasset Perimeter Guidance PS26/18: Applications Open September 30, New Regime Takes Effect October 2027

• Money & finance
• Crypto & blockchain