Swedish Police Label Crypto Exchanges ‘Professional Money Launderers’ in Crackdown on Illegal Activity
Date: 2024-09-24 Author: Gabriel Deangelo Categories: IN WORLD
Swedish police, together with the Financial Intelligence Unit (FIU), have labeled several cryptocurrency exchanges as “professional money launderers” (PMLs) in a recent raid. The operation is aimed at combating unregistered and illegal operators in the cryptocurrency market.
The FIU says the exchanges are suspected of having links to criminal groups and systematically laundering money for individuals and organized crime networks. In its analysis, the FIU identified four categories of PMLs based on their operational activities: node exchange providers, hawala exchange providers, asset exchange providers, and platform exchange providers.
The FIU report highlights the need to strengthen law enforcement on crypto exchange platforms to combat illegal activities. “FIU Sweden views illegal cryptocurrency providers as a new threat in money laundering schemes and as an important element for organized crime to maintain and expand their criminal markets,” the document states.
At the same time, Swedish authorities acknowledged the positive role of licensed and legitimate crypto exchanges in reducing money laundering risks. They called on these legitimate platforms to be vigilant, monitor suspicious trading patterns, and take proactive measures such as suspending suspicious transactions and refusing customers involved in illegal activities.
In addition to this, Sweden has also stepped up the fight against tax evasion in the Bitcoin mining industry. A recent investigation by the Swedish Tax Agency found that 18 out of 21 crypto mining companies submitted false or incomplete tax information between 2020 and 2023. These discrepancies are estimated to have resulted in $90 million in unpaid taxes.
The tax agency also raised concerns about potential money laundering activities. Because crypto mining hubs are exempt from the Anti-Money Laundering Act, they currently operate outside of regulatory oversight, increasing the risk of illicit financial transactions.
The tax agency’s findings led to legal action by the affected companies. Two companies were able to reduce their liabilities, with the court ruling that “the amounts were adjusted to reflect the verdicts.”
Western Europe is emerging as a leader in cryptocurrency adoption, attracting a significant number of traders, ranging from 1.2 million to 1.5 million daily. Germany and France are at the forefront of activity in the region, while Austria has seen the largest year-on-year growth, increasing its user base by 70%.
According to a YouGov study commissioned by crypto exchange Bitpanda, Gen Z and millennials are at the forefront of cryptocurrency adoption in Europe. The study covered five countries, including Switzerland, Austria, France, Germany, and Italy. Switzerland emerged as the leader in digital currency ownership, with 23% of the population owning cryptocurrency, followed by Austria with 18% and France with 14%. Germany and Italy trailed behind with 11% and 9%, respectively.
