Cryptocurrencies: Regulation
The question
To ask the Chancellor of the Exchequer, what recent assessment she has made of the adequacy of UK financial regulations in preventing hostile states, including Iran, from exploiting cryptocurrency platforms accessible in the United Kingdom to raise funds.
Answered by Lucy Rigby
The UK has a robust anti-money laundering, counter-terrorist financing and sanctions regime to counter hostile state activity.
Cryptoassets are in scope of the UK’s Money Laundering and Terrorist Financing Regulations, which require regulated firms to apply enhanced due diligence to business relationships and transactions involving high risk third countries, including Iran. This includes verifying customers’ identities and undertaking checks on source of funds and wealth.
The UK has imposed financial sanctions on Iran in response to their de-stabilising and hostile behaviour. These sanctions apply to cryptoassets as well as traditional finance. HM Treasury’s Office of Financial Sanctions Implementation (OFSI) delivered a cryptoasset Threat Assessment in July 2025 to support industry their implementation and compliance efforts.
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