Issue Unregulated cryptoassets fuelling organised crime and straining services

Summary

The report suggests that without proper regulation, cryptoassets could fuel a rise in organised crime such as fraud, illicit finance and illegal trading in drugs and weapons. More crime would put pressure on public services such as policing and health care and could weaken social cohesion. The report already finds that the complexity, anonymity and light regulation of cryptoassets have opened new channels for money laundering, sanctions evasion and terrorist financing. It also links this to other risks, since weak oversight of emerging financial systems makes it easier for terrorists to fund operations and for criminals to move money. The report sees new policing powers to seize digital assets tied to crime as a way to help deter such activity.