British criminologists say Bitcoin is a convenient tool for criminals

The widespread adoption of cryptocurrencies helps criminals launder illicit proceeds. This finding is contained in the annual report of the National Crime Agency (NCA).

“The use of digital assets for money laundering has grown across several types of offenses. The further adoption of the technology will provide broader opportunities for criminals to move funds.”, the document says.

The NCA noted the usefulness of cryptocurrencies for sanctions evasion, extortion, and use by dark-net marketplaces. The COVID-19 pandemic has only intensified the trend, experts noted.

Firms registered with the Financial Conduct Authority (FCA) that deal in cryptocurrencies are required to submit annual reports on financial crime.

UK Financial Secretary to the Treasury John Glen believes that a large number of startups do not comply with AML requirements. He explained the reason for the temporary registration regime for cryptocurrency companies in the country until 9 July.

According to the official, only five applications have been approved; 167 are awaiting registration, and FCA has not yet begun checks on a further 77.

“To date, 90% of the firms considered have withdrawn their applications. We are building a robust AML regime. This will strengthen Britain’s reputation as a safe and authoritative jurisdiction for opening and growing businesses in the cryptocurrency space.”, Glen said.

Authorities in Britain intend to regulate the industry along the lines of traditional finance. In January, the Treasury began consultations on oversight of cryptocurrencies and stablecoins.

In April the FCA began examining the legality of Binance launching tokenised stock trading.

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