In order to combat the rising usage of cryptocurrencies in criminal activities, London’s Metropolitan Police created a 40-person unit that specialises in crypto investigations. The ‘endemic role’ that digital currencies play in organised crime worries the authorities. The specialised unit has responded to 74 intelligence referrals since its founding in May, sparking 19 ongoing criminal investigations. Criminal networks prefer cryptocurrencies, especially Bitcoin, since they can conceal assets and make cross-border transactions simple.
According to a recent analysis from the law company RPC, the reported value of UK cryptocurrency fraud cases increased by 41% in the last year, reaching £306 million. Leading the Met’s crypto investigative team, Detective Inspector Geoff Donoghue, emphasised the mounting evidence that virtual money is now used in a variety of unlawful acts, such as the trafficking of drugs, the purchase of weapons, and the exploitation of people. Although the government announced plans to regulate cryptocurrencies in line with conventional financial assets like equities and bonds in February, the regulatory environment for cryptocurrency trading in the UK is still mostly unknown. MPs are debating whether to label cryptocurrency trading as a kind of gambling as a result of this.
