The Swedish Police Authority and the Financial Intelligence Unit (FIU) have identified several cryptocurrency exchanges as “professional money launderers” (PMLs) due to their involvement in supporting organized crime. This conclusion emerged from an in-depth assessment of unrecorded and unlawful crypto service providers.
Profiles of Professional Money Launderers in Sweden
The FIU has pinpointed four distinct profiles of PMLs operating within Sweden:
- The Node Exchange Provider
- The Hawala Exchange Provider
- The Asset Exchange Provider
- The Platform Exchange Provider
These groups are systematically engaged in money laundering activities for criminals and criminal organizations, posing a significant threat to the nation’s financial integrity.
Rising Threat for Licensed Services as Crypto Services Expand
Cross-border transactions facilitated by these illicit crypto services are increasingly becoming a nuisance for Swedish authorities. The FIU emphasizes that these transaction formations are integral components of organized criminal activities. They urge law enforcement agencies to engage more actively with trading platforms and monitor them closely to curb these illegal actions.
This proactive approach is deemed essential to mitigate the expansion of criminal markets within Sweden. Previously, licensed cryptocurrency exchanges were acknowledged for their efforts to combat money laundering. These exchanges have been encouraged to remain vigilant, report suspicious trading activities, and take appropriate actions against illicit trades.
Tax Evasion in the Crypto Mining Business in Sweden
In addition to targeting crypto exchanges, Swedish authorities have focused their scrutiny on Bitcoin mining activities. A recent investigation by the Stockholm-based Swedish Tax Agency uncovered irregularities and incomplete tax information among 18 out of 21 investigatory targets between 2020 and 2023. The investigation revealed unpaid taxes amounting to approximately 90 million SEK.
Despite some mining companies challenging these tax claims, the actions taken by Swedish authorities highlight the country’s growing concern regarding the operations of blockchain companies, especially in the realms of mining and cryptocurrency trading. The report sends a clear message: unauthorized operations in the crypto market will face legal and regulatory consequences.
In conclusion, the Swedish authorities are ramping up their efforts to regulate and control the burgeoning cryptocurrency market. Both crypto exchanges and mining businesses are under scrutiny, and any unauthorized or unscrupulous activities will not go unnoticed. The message is clear: Compliance with legal and regulatory standards is non-negotiable in Sweden’s crypto landscape.
