In America, President Donald Trump has come under fire for his ties to the industry. In April last year the U.S. disbanded a Department for Justice unit tasked with investigating crypto-related fraud.
In Britain, Nigel Farage’s right-wing Reform UK became the first major British political party to accept crypto donations. The British government is considering a ban on political donations through crypto. But cryptocurrency exchanges will not be regulated by the country’s Financial Conduct Authority until 2027.
Much of Britain’s concern about crypto comes from Russia’s recent embrace of the currency as an alternate means of financing its war economy following the invasion of Ukraine. Browder said Russia is now successfully evading sanctions using cryptocurrency — and that it is becoming a global epicenter for its illicit use.
“Half of the illicit exchanges identified in the database have been based in Russia. Four out of five major ransomware groups in the database have been based in Russia.
“It is the home to crypto darknet marketplaces such as Hydra — one of the largest in the world, which had processed over $5 billion in illicit funds through the sale of harmful drugs and other illegal services,” he warned.
Browder added that British, American and EU policymakers have so far been unable to tackle the problem: “Criminals and rogue regimes are basically running circles around U.K., U.S. and EU prosecutors.”
“Criminals are able to escape without legal consequences, and victims are left without redress and adequate compensation.”