The UK’s National Economic Crime Centre (NECC) has placed cryptoassets at number three on its list of nine priorities for tackling economic crime, according to its latest annual report published this week.
Crypto assets rise in priority
The NECC, which coordinates the national response to economic crime across the UK, established the list of priorities in collaboration with the Financial Conduct Authority, the Home Office, and the Treasury. Cryptoassets rank just below professional enablers such as corrupt lawyers and accountants, and politically exposed persons, reflecting the increasing concern over their misuse in criminal activity. Cash and money mules involved in illicit transactions fall further down the list.
The priority list is intended to direct the compliance processes of financial institutions and other regulated bodies across the country. The NECC highlighted that criminals are continually developing new methods to exploit cryptoasset products in order to conceal and transfer illicit funds at scale.
Criminals have demonstrated “innovative use of crypto asset products to evade detection and move illicit value at scale,” the threat assessment stated, pointing to cross-border laundering networks combining traditional and modern techniques.
The NECC reported that many organized crime groups now engage specialist laundering networks rather than handling these activities directly. The agency noted an increase in the use of synthetic identities and automated tools, mentioning artificial intelligence and crypto as fast-emerging threats.
Building intelligence-led crypto tracking capability
In response to these evolving threats, the NECC has announced plans to develop a more proactive and intelligence-led approach to tracking and disrupting crypto-related crime. While police and agencies worldwide often rely on blockchain analytics providers such as Chainalysis, Elliptic, and TRM Labs, the NECC aims to enhance its in-house capabilities, with priorities including sanctions evasion, ransomware payments, and traditional money laundering through digital assets.
The NECC estimates that each year more than £100 billion is laundered through the UK, though it does not disclose the specific proportion attributed to cryptoassets.
Mini dictionary: National Economic Crime Centre (NECC), a division of the UK’s National Crime Agency, coordinates responses to major financial crimes, integrating law enforcement and regulatory efforts.
Major enforcement actions: Operations Destabilise and Atlantic
The NECC offered new data on Operation Destabilise, an ongoing investigation into Russian-speaking networks accused of converting criminal cash into cryptocurrency. Since 2022, this effort has led to 129 arrests and the seizure of more than £25 million in cash and cryptoassets across the country. The figure marks one more arrest than in the previous report. The agency signaled intentions to further expand the operation in the future.
In addition, the agency spotlighted Operation Atlantic, a week-long campaign launched from NECC headquarters. In March, investigators working with the US Secret Service, major exchanges Coinbase, Binance, Kraken, and stablecoin provider Tether, identified 20,000 approval-phishing victims and froze $12 million. The operation also shut down over 120 fraudulent domains. One UK victim reportedly lost over £52,000 (approximately $66,000) in a single scam incident.
| Operation | Targets | Results | Key Partners |
|---|---|---|---|
| Destabilise | Russian-speaking networks | 129 arrests; £25M seized | NECC |
| Atlantic | Approval-phishing scammers | 20,000 victims identified; $12M frozen; 120+ domains shut | US Secret Service, Binance, Coinbase, Kraken, Tether |
Policy on crypto privacy tools
On the policy front, the NECC opted not to endorse a full ban on crypto privacy technology. Following a roundtable session organized by the NECC, a paper from the Royal United Services Institute recommended against imposing a blanket ban on such tools, highlighting the ongoing debate within the UK security establishment regarding privacy and law enforcement needs.
The paper published after the NECC’s roundtable opposed a complete ban on crypto privacy tools, reflecting the tension between protecting user rights and enabling responses to criminal activity.
