Key Takeaways:
- Swedish authorities labeled unlicensed crypto exchanges as “professional money launderers” tied to organized crime.
- The Financial Intelligence Unit (FIU) identified four categories of money laundering exchanges and recommended stricter oversight.
- Sweden’s Tax Agency found $90 million in unpaid VAT from Bitcoin mining firms amid intensified scrutiny of the sector.
Swedish authorities have labeled certain cryptocurrency exchanges as “professional money launderers” (PMLs), according to an investigation by the Police Authority and Financial Intelligence Unit (FIU).
These unlicensed platforms are connected to organized crime and facilitate systematic money laundering.
Swedish authorities have labelled unlicensed and illegal crypto exchanges as 'Professional Money Launderers' 🚨
— CryptoSavingExpert ® (@CryptoSavingExp) September 24, 2024
These PMLs have criminal links and allow criminal individuals and networks to systematically launder money 💰🛀
They see them as a growing global threat 🗺️
The FIU identified four types of PMLs: node, hawala, asset, and platform exchange providers.
The report called for enhanced law enforcement oversight of crypto exchanges to combat illegal activities and recognized the role of licensed platforms in helping prevent money laundering by monitoring suspicious transactions.
Additionally, Sweden has intensified its crackdown on Bitcoin mining, with the Tax Agency investigating 21 mining firms between 2020 and 2023.
👮 Sweden has labeled certain cryptocurrency exchanges as “professional money launderers” (PMLs) in a recent crackdown.#Sweden #Cryptohttps://t.co/tkQpbVxN8l
— Cryptonews.com (@cryptonews) September 24, 2024
Findings revealed discrepancies in tax payments, particularly in value-added tax (VAT) obligations, with $90 million in unpaid VAT uncovered.
Although some firms appealed, only two cases saw adjustments.
The combined actions are part of Sweden’s broader efforts to tackle financial crime in the crypto sector.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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