In the year Crypto companies among ‘biggest risks’ for money laundering in 2022-2023: UK government
Crypto firms are among the “highest risk” of being exploited for money laundering, according to the UK's top financial regulator.
In a report released on May 1, the UK Treasury stated that crypto-asset companies were among the four major organizations left “particularly vulnerable” to financial crimes, especially money laundering cases, between 2022 and 2023, based on data provided by the Financial Conduct Authority (FCA).
Crypto firms are listed along with retail banking, wholesale and wealth management companies.
The report Between 2022 and 2023, there will be a total of 52.8 full-time specialists overseeing anti-money laundering issues, with nearly a third focused specifically on overseeing crypto companies.
Between 2022 and 2023, the FCA's financial crime specialists carried out a total of 231 reviews of financial firms operating in the UK, as well as a further 375 cases related to financial crime and sanctions.
Related: UK regulator steps up measures against crypto market abuse
As part of a wider regulatory effort outside of these full-time reviews, FCA teams launched a total of 95 cases into British crypto companies.
Britain is working to introduce clearer legislation for domestic crypto companies, with the UK Treasury saying it wants to provide a full regulatory framework for crypto assets and stablecoins by July.
On April 26, the UK's National Crime Agency (NCA) and police received expanded powers to “seize, detain and destroy” cryptocurrency used by criminals. Under the new law, the country's police will not be required to make an arrest before seizing crypto holdings.
UK law enforcement may seize items such as passwords and memory sticks to aid investigations. They are also empowered to remove crypto assets from being returned to circulation – preferably by burning the asset – if it is deemed detrimental to the public interest.
Under the new rules, UK police can transfer seized illegal cryptocurrency to a wallet under their control, and victims of crime can apply to recover funds from their crypto accounts.
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