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Ruholamin Haqshanas
Author
Ruholamin Haqshanas
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The Swedish Police Authority, in collaboration with the Financial Intelligence Unit (FIU), has labeled certain cryptocurrency exchanges as “professional money launderers” (PMLs) in a recent crackdown targeting unlicensed and illegal operators.
According to the FIU, these exchanges are suspected of having criminal ties and facilitating systematic money laundering for individuals and organized crime networks.
In its analysis, the FIU classified PMLs into four distinct profiles based on their operational characteristics, including node exchange providers, hawala exchange providers, asset exchange providers, and platform exchange providers.
FIU Advocates for Crypto Regulation
The FIU highlighted the need for enhanced law enforcement presence and intervention on crypto trading platforms to combat these illicit activities.
“FIU Sweden assesses illicit cryptocurrency providers as an emerging threat within money laundering schemes and a crucial part for organized crime to maintain and expand their criminal markets,” the report stated.
While cracking down on illegal activities, Swedish authorities also acknowledged the positive role of licensed and legitimate crypto exchanges in mitigating money laundering risks.
They urged these compliant platforms to remain vigilant, monitor suspicious trading patterns, and take proactive measures such as halting suspicious transactions and offboarding clients involved in illegal activities.
In a parallel effort, Sweden has also been targeting tax evasion within its Bitcoin mining community.
A recent investigation by the Swedish Tax Agency revealed that 18 out of 21 crypto-mining firms had submitted misleading or incomplete tax information between 2020 and 2023.
The discrepancies reportedly led to an estimated $90 million in unpaid taxes.
The tax authority further expressed concerns regarding potential money laundering activities.
Due to their exclusion from the Money Laundering Act, crypto mining data centers currently operate outside the scope of regulatory oversight, which raises the risk of illicit financial transactions.
The tax agency’s findings resulted in legal appeals from the affected mining companies.
Two firms succeeded in reducing their liabilities, and the court said that “the amounts above have been adjusted with regard to the verdicts.”
Western Europe Leads in Crypto Adoption
As reported, Western Europe has emerged as a leading region in global crypto adoption, attracting a substantial number of daily traders, ranging from 1.2 million to 1.5 million individuals.
Germany and France are at the forefront of activity in the region, while Austria has experienced the most significant yearly growth, witnessing a remarkable 70% surge in users.
Notably, Gen Z and Millennials are at the forefront of cryptocurrency adoption in Europe, according to a YouGov research commissioned by crypto exchange Bitpanda.
The survey analyzed five countries, including Switzerland, Austria, France, Germany, and Italy.
The survey identified Switzerland as the leading nation in digital currency ownership, with 23% of its population owning digital currencies.
This is followed by Austria at 18% and France at 14%. Germany and Italy lag behind with 11% and 9%, respectively.
