Cryptocurrencies: Crime

Cryptoassets exchanges, like all businesses who launder funds, can be prosecuted under the money laundering offences in Part 7 of the Proceeds of Crime Act 2002 and fined accordingly. In April 2024, new powers came into force to enable law enforcement to more effectively investigate, seize, and recover the proceeds of crime within the cryptoasset ecosystem.

Since 2020, businesses providing cryptoasset services that fall under the scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) in the United Kingdom have also been required to register with the Financial Conduct Authority (FCA), and comply with the requirements of the regulations. They must also comply with the UK sanctions regime and are obliged to report any breach of these regimes to the Office of Financial Sanctions Implementation (OFSI). They should further consider their obligation to submit a suspicious activity report (SAR) to the UK Financial Intelligence Unit.

More widely, the government has bolstered law enforcement’s capacity and capability to tackle money laundering through cryptoassets. This includes new specialist capability in the NCA and partner agencies, funding public-private crypto collaboration teams in police forces and Regional Organised Crime Units, and the development of a multi-agency operational crypto cell to ensure that knowledge and abilities in investigating cryptoassets are pooled together and all available tools and powers are exploited efficiently.