UK FCA Targets Three London Sites in Illegal P2P Crypto Crackdown

Britain is bringing cryptoassets into the Financial Conduct Authority’s regulatory perimeter under legislation introduced in February 2026, with the new regime due to take effect on Oct. 25, 2027. Businesses issuing qualifying stablecoins, operating cryptoasset trading platforms, dealing or arranging transactions, safeguarding cryptoassets or arranging staking may need FCA authorization. The framework is intended to strengthen consumer protection and provide clearer operating standards for a market previously governed by a narrower registration regime.

The FCA published final perimeter guidance on Sept. 16, 2026, two weeks before the application gateway opens on Sept. 30. Firms seeking transitional arrangements must apply by Feb. 28, 2027, and existing registrations or permissions will not convert automatically. Overseas firms dealing, arranging transactions or providing custody services to UK retail customers may also fall within scope. Eligible applicants that file during the window can continue specified activities while the FCA assesses their cases; late applicants cannot rely on that transitional protection.

Britain’s Financial Conduct Authority has regulated cryptoasset promotions since Oct. 8, 2023, requiring marketing to UK consumers to be issued or approved through an authorized route. Breaches can constitute a criminal offense. The FCA sued HTX, formerly Huobi, on Oct. 21, 2025, in its first civil action against a crypto company over alleged illegal promotions, seeking a declaration of breach and an injunction.

The High Court on June 25, 2026, stayed proceedings between the FCA and HTX operator Huobi Global S.A. for two months while they pursue settlement through alternative dispute resolution or other means. No settlement amount has been disclosed. The FCA said an employee used a UK IP address and driving licence to complete a peer-to-peer crypto purchase and two futures trades. Court filings recorded 4.6 million UK visits to HTX in 2023 and about 13,000 through October 2024.

Peer-to-peer crypto trading allows buyers and sellers to exchange assets directly. Businesses providing such services in the UK must register with the Financial Conduct Authority under the Money Laundering Regulations 2017 and maintain anti-money-laundering controls. No P2P crypto operator is currently registered with the FCA, and the case marks a shift by the regulator from warnings to enforcement.

On April 22, 2026, the FCA said it had joined forces with HM Revenue & Customs and the South West Regional Organised Crime Unit to raid eight suspected illegal trading locations in London. Authorities issued immediate cease-and-desist notices at each site and gathered evidence supporting several criminal investigations. They did not disclose the transaction amounts involved, the value of assets seized or the number of arrests.