Sunday, 20 September 2026
Britain’s financial regulator is increasing pressure on unregistered cryptocurrency businesses operating from physical locations as the country prepares for a substantially broader regulatory framework for digital assets. The Financial Conduct Authority, working with HM Revenue & Customs and the Metropolitan Police, visited three locations in London on 10 September as part of an investigation into suspected unregistered peer-to-peer cryptocurrency trading. Operators at each location were instructed to stop activities suspected of falling outside existing registration requirements.
The operation follows an intervention in April, when the FCA and other enforcement bodies visited eight London premises in connection with suspected unregistered peer-to-peer crypto activity. Evidence collected during that operation is being used to support criminal investigations and other enforcement action. Across the two operations, the FCA and its partners have therefore visited 11 London premises during 2026, showing how enforcement against unregistered crypto businesses is increasingly extending beyond online activity to identifiable physical locations.
Peer-to-peer transactions allow buyers and sellers to exchange cryptoassets directly rather than through a conventional centralised exchange. Individuals trading privately are not necessarily subject to registration requirements, but anyone conducting relevant peer-to-peer crypto trading as a business in the UK requires appropriate registration. According to the FCA, there are currently no registered peer-to-peer crypto businesses operating in the country. The regulator is concerned that unregistered operators can provide channels through which illicit funds are moved while avoiding anti-money-laundering controls.
The use of identifiable London premises adds a physical property dimension to an industry generally associated with digital transactions. The FCA has not disclosed the addresses involved or whether the locations were offices, retail units or other forms of commercial accommodation. There is also no indication that landlords or property owners were implicated in the suspected activity. The operations nevertheless demonstrate that enforcement against digital-asset businesses can extend directly to premises from which suspected unregistered operations are conducted.
The September action comes as Britain prepares for a major expansion of crypto regulation. The existing framework principally covers anti-money-laundering requirements and financial promotions, but a broader FCA authorisation regime is scheduled to take effect on 25 October 2027. Applications under the new system are due to open on 30 September 2026, beginning the transition towards a substantially wider regulatory perimeter.
The future system will bring a broader range of activities within financial-services regulation, including crypto trading platforms, intermediaries, custody providers, stablecoin businesses and certain staking activities. Existing registration under anti-money-laundering rules will not automatically provide authorisation under the new framework. Companies entering the regime will face requirements covering areas including financial resources, governance, operational resilience and market conduct, bringing regulated crypto businesses closer to the compliance structures applied across established financial services.
For Britain’s commercial property market, the immediate impact remains limited, but the direction of regulation could become increasingly relevant to landlords, flexible-office operators and property managers. As crypto businesses become more institutionalised, verifying the legal entities occupying premises and understanding the activities conducted there may become more important within tenant due diligence and reputational risk management. The London operations underline a wider point: while cryptocurrency transactions are digital, businesses facilitating them can still depend on physical premises, bringing parts of the commercial property market into an expanding regulatory and enforcement environment.
