The annual report of the British National Crime Agency (NCA) states that the UK is involved in illegal cryptocurrency transactions of US$1.7 billion to US$5.1 billion every year. Criminal activities based on money laundering continue to grow, and money laundering techniques are diversified and involve transnational cybercrime.
NCA: Cryptocurrency laundering continues to grow
In its National Strategic Review, the NCA said it expects illegal cryptocurrency transactions linked to the UK to total between $1.7 billion and $5.1 billion each year, with money laundering crimes accounting for the bulk.
The agency emphasized that criminal activities involving digital assets are increasing, and they are frequently used for money laundering, payment for goods and illegal services on the dark web, and extortion:
In addition to traditional money laundering tools (cash, gold, art, etc.), money laundering networks and methods are also continuing to change. With increasingly serious cyber crimes (such as theft, malware and ransomware), actors are increasingly Cryptoassets are often used to launder the proceeds of crime.
The NCA named cash-intensive industries such as personal care and hotels, which are often used by criminals to conceal illegal cash, and they have recently begun to use cryptocurrencies to mix legal and illegal funds and enter them into the wider financial system to hinder the pursuit of law enforcement agencies. :
Larger criminal organizations will use more diverse methods to launder money, and they will increasingly convert cash into crypto assets, which is often associated with transnational cybercrime that affects victims around the world.
At the same time, the report also cited the notorious ransomware as an example, saying that it caused major losses to thousands of people in the UK totaling billions of pounds:
The NCA, with the help of law enforcement agencies from various countries including the US Federal Bureau of Investigation (FBI), dismantled LockBit, a large ransomware criminal group.
It is reported that at least two LockBit associates were arrested in Poland and Ukraine at that time, and more than 200 cryptocurrency accounts were frozen by relevant authorities.
(The U.S. Department of Justice indicted the leader of LockBit, the world’s largest ransomware software, whose identity was exposed and a reward of tens of millions of dollars was offered)
UK continues to tighten crypto regulation
The NCA, founded in 2013, created an additional dedicated cryptocurrency enforcement team in 2023, and in April this year gained broader enforcement powers over cryptocurrencies, including the seizure of suspicious assets and crypto service provider users. Data call.
(The United Kingdom strengthens encryption supervision: law enforcement agencies can freeze or destroy illegal encryption assets without the need for conviction)
On the other hand, as the regulator of the country’s encryption industry, the UK’s Financial Conduct Authority (FCA) has always been known for its rigorous regulatory stance and strength, from publishing advertising and marketing guidelines for encryption companies to promoting stablecoin regulatory plans. It can be said that no effort was spared.
Money laundering crimes are rampant and it’s hard to prevent them
For a long time, even if domestic and foreign exchanges have adopted strict KYC and anti-money laundering measures, they still cannot prevent the cryptocurrency transactions provided by their platforms from being abused by criminal organizations, and there are endless cases involving related sanctions.
(FATF Progress Report on Anti-Money Laundering Standards for Virtual Assets: 75% of jurisdictions have failed to do a good job, and criminal abuse is rampant)
It is reported that including Binance, BitMEX, Coinbase, as well as domestic ACE ace exchange and Rybit, etc., have all been punished by relevant authorities.
Just last week, on-chain detective ZachXBT also cracked a large-scale money laundering criminal network in North Korea. The team obtained at least more than 300,000 US dollars per month.
(ZachXBT exposed North Korea’s hacker criminal network, pretending to be developers to infiltrate the team and collect money: US$500,000 per month)
This article The British National Crime Agency reports: US$5 billion is related to cryptocurrency criminal activities every year. It first appeared on Chain News ABMedia.