The Metropolitan Police in London has formed a dedicated team of 40 members to investigate the rising number of crypto fraud cases in the United Kingdom. Over the past year, crypto fraud cases have increased by 41% to £306 million. The team, consisting of experts in investigating crypto-related crimes, aims to address the growing issue of illicit activities involving digital currencies.
London law enforcement officials describe digital currencies as deeply entrenched in organized criminal operations. The team has received 74 intelligence referrals and is currently conducting 19 ongoing criminal investigations.
Detective Inspector Geoff Donoghue, a member of the Metropolitan Police’s crypto investigation team, highlighted the stringent regulations in the UK that have given rise to a sector focused on providing guidance and ensuring compliance. However, some of the largest cryptocurrency firms, including Binance and Huobi, have recently faced challenges in meeting the more stringent standards implemented to enhance consumer protection.
The Financial Conduct Authority (FCA) has issued over 150 notifications within the new regulatory framework, specifically regarding the promotion of unauthorized cryptocurrency groups. Non-compliance with these regulations, which have a global scope, can result in fines or imprisonment.
Despite the efforts to regulate the crypto industry, the number of fraud cases continues to rise.