The Swedish Police Authority and the Financial Intelligence Unit (FIU) have taken decisive action against cryptocurrency exchanges, classifying them as "professional money launderers" (PMLs). This classification follows an extensive analysis of services offered by unlicensed and illegal crypto providers, highlighting the role these platforms play in facilitating money laundering for criminal networks.
The FIU identified four distinct profiles of PMLs: node exchange providers, hawala exchange providers, asset exchange providers, and platform exchange providers. These classifications underscore the varied methods employed by illicit operators to launder money, often linked to organized crime.
In response to the rising threat posed by illegal cryptocurrency providers, the FIU called for greater involvement from law enforcement on crypto trading platforms. The agency warned that these providers represent an emerging threat in money laundering schemes, playing a crucial role in the expansion of organized crime. The report urged licensed and legitimate crypto platforms to monitor their users for suspicious trading patterns, take preventive measures, and, if necessary, halt transactions or offboard clients.
Sweden's crackdown extends beyond exchanges to the cryptocurrency mining sector. The Swedish Tax Agency recently investigated 21 crypto-mining firms from 2020 to 2023, uncovering several discrepancies in their tax filings. Out of these, 18 firms were found to have submitted misleading or incomplete information to evade value-added tax (VAT). The agency emphasized that such practices lead to significant tax revenue losses for the country.
In light of a $90 million tax demand, several of the investigated mining firms have appealed to the administrative court. Notably, the appeals of two firms were accepted, resulting in adjustments to the amounts owed based on the court's rulings.
As Sweden intensifies its efforts to regulate the cryptocurrency landscape, the emphasis on monitoring and accountability is clear. While the authorities recognize the role of legitimate trading platforms in combating money laundering, they remain vigilant against the risks posed by unlicensed operations.
September 2024, Cryptoniteuae