Cryptocurrencies
The question
To ask the Chancellor of the Exchequer, pursuant to the answer of 21 May 2026, to Question 2120, on Cryptocurrencies, and further to the HMT press release, "UK cracks down on backdoor Russian sanctions evasion with tough new measures", of 26 May 2026, what assessment has (a) HMT and (b) the Financial Conduct Authority, made of whether the Tether cryptocurrency is connected with (i) money-laundering and (ii) sanctions evasion.
Answered by Rachel Blake
HMT has assessed that cryptocurrencies, including USD Tether, are increasingly involved in sanctions evasion activity.
OFSI’s Cryptoasset Threat Assessment was published in July 2025 and highlighted the use of USD Tether by designated Russian cryptoasset exchanges, including Garantex and Grinex, and Russian money laundering groups. The assessment highlighted the exploitation of stablecoins, including USD Tether, by DPRK (North Korean) IT workers. The assessment also highlighted that, since 2022, Iran has increased its usage of cryptoassets as payment in foreign trade, including through the prevalent use of USD Tether.
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