FCA Cracks Down on London Cryptocurrency Trading Sites Ahead of New Rules

The UK's Financial Conduct Authority (FCA) has taken action against three London-based cryptocurrency trading sites, issuing cease-and-desist letters following a September 10 operation. The FCA stated that no peer-to-peer crypto business is currently registered with the regulator.

The new authorization gateway opens on September 30, ahead of full rules in October 2027. This marks a significant shift in the UK's approach to cryptocurrency regulation, as previously only 17% of determined applications have led to registration since January 2020.

Enforcement chief Steve Smart emphasized that the FCA will continue to disrupt illegal crypto activity, with evidence from the operation supporting ongoing criminal investigations. The authorization clock is ticking, and firms must navigate the new rules to avoid losing access to the UK market.

The FCA's research found that 8% of UK adults held cryptocurrency in 2025, while 73% of users obtained assets through centralized exchanges. This highlights the potential for growth in the sector, but also underscores the need for firms to comply with regulations to tap into this demand.