FCA confirms business peer-to-peer crypto trading requires registration
Crypto compliance teams must treat any UK by-way-of-business peer-to-peer crypto trading as requiring FCA registration, or it is illegal
Change
On 22 April 2026 (updated 18 May 2026), the FCA disrupted suspected illegal peer-to-peer crypto trading at eight London premises and clarified that peer-to-peer crypto trading carried out by way of business in the UK requires FCA registration under the Money Laundering Regulations 2017; there are currently no registered P2P crypto businesses in the UK.
Why it matters
The action sets the enforcement boundary for UK peer-to-peer crypto trading: personal peer-to-peer transactions are not the target, but trading carried out by way of business without FCA registration is illegal under the Money Laundering Regulations 2017. With no FCA-registered P2P crypto businesses currently operating, any business-P2P activity is unregistered and therefore illegal. Premises used for such activity can become evidence sources for criminal investigations conducted with HMRC and regional organised-crime units.
Implications
- — Crypto compliance teams must distinguish personal peer-to-peer transactions from activity carried out by way of business, and treat the latter as requiring FCA registration in the UK or as illegal where unregistered.
- — Operators carrying out or facilitating business peer-to-peer crypto trading in the UK must stop unless appropriately FCA-registered, given the FCA's position that no registered P2P crypto businesses currently exist.
- — Financial-crime and compliance teams must account for the FCA conducting on-site cease-and-desist operations with HMRC and regional organised-crime units, with seized evidence feeding criminal investigations.
Who is affected
- — Crypto compliance teams assessing FCA registration requirements
- — Operators carrying out or facilitating by-way-of-business peer-to-peer crypto trading in the UK
- — Financial-crime and AML compliance teams at UK crypto businesses