NCA seizes cryptoassets worth £27m in AML crackdown

The National Crime Agency’s (NCA) annual report has revealed that the enforcement agency seized £27m in cryptoassets during the last year. 

In their report, the NCA linked cryptocurrencies to potential money laundering. In doing so, the agency highlighted the Russian invasion of Ukraine as a particular cause for concern in relation to the illegal laundering of cryptoassets.

Robust system still not in place

Much of the government’s legal authority over digital currency is tied up with existing anti-money laundering regulations (AMLs). This is because there is still not a robust regulatory system for cryptoassets in place in the UK.

That said, signs of increased institutional regulation are now starting to emerge globally. This is particularly true in the case of the EU, which agreed on a landmark law governing cryptoassets in July.

While the UK is yet to deliver its own regulatory system despite repeated promises, those in the sector hope that the British crime agency’s increased action in seizing digital assets suggests the government is starting to catch up to the technology and the tactics fraudsters are currently using.

After all, by seizing £27m in cryptoassets in 2021-22, it’s clear that the UK’s criminal and regulatory authorities are gaining a deeper understanding of cryptoassets and are developing an appetite to take enforcement action against stolen or laundered cryptoassets.

On top of this, in July, the Treasury Committee announced an inquiry into the role of crypto in the UK. The inquiry’s goal is to explore the opportunities cryptoassets provide to the economy, whilst also determining the risks.

“Cryptoassets have the potential to bring new and innovative changes to the UK financial system, the economy and broader society,” said MP Mel Stride, chair of the Treasury Committee.

“However, there are also significant concerns around their use to launder funds, purchase illegal products, and evade international sanctions.”

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