LONDON — The Financial Conduct Authority moved Sunday to broaden its enforcement posture against unregistered cryptocurrency operators, releasing updated guidance on digital asset registration requirements in the wake of coordinated raids on illegal peer-to-peer crypto traders at multiple London sites earlier this week. The regulator confirmed that investigations are ongoing and that online platforms facilitating unregistered P2P crypto transactions are now a primary focus of its supervisory unit.

The FCA's guidance, posted to its official register portal, clarifies that operators facilitating crypto-asset exchanges — whether in person or via app-based platforms — must hold full registration under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. Officials warned that the threshold for enforcement action has been lowered following an internal review of non-compliant entities identified during the London operations.

The move reflects mounting regulatory pressure on the UK's crypto sector as the government seeks to position London as a compliant hub for digital finance without sheltering illicit activity. Industry bodies including CryptoUK and the UK Digital Finance Association are expected to respond Monday, with several member firms already reviewing their registration status in anticipation of increased FCA scrutiny.

Legal experts at firms including Linklaters and Clifford Chance noted Sunday that the guidance carries significant implications for smaller fintech startups operating in grey areas of the crypto market. 'The FCA is signalling that the informal tolerance extended to early-stage platforms during the registration transition period is over,' said one financial regulation partner who asked not to be named ahead of a formal client briefing.

The enforcement sweep and accompanying guidance mark an escalation in the FCA's campaign to bring the UK crypto market in line with incoming EU Markets in Crypto-Assets (MiCA) standards, even as Britain charts its own post-Brexit regulatory path. Analysts at Autonomous Research noted that the timing — just months before several major crypto firms are due to renew their FCA registrations — amplifies the pressure on the sector to demonstrate full compliance.