Cryptocurrencies used to launder money, according to MP

Cryptocurrencies are used to launder money, buy illegal goods and evade international sanctions, a senior MP says. 

Launching an inquiry into the industry, Treasury Committee chairman and Tory MP Mel Stride said there were ‘significant concerns’ about the way digital currencies and other assets work, and a crackdown may be required to protect businesses and consumers. 

The comments came amid warnings of a ‘crypto winter’ as the value of digital currencies tumbles. 

Bitcoin, the world’s biggest cryptocurrency, is trading below $20,000, having neared $70,000 in November. 

Stride said: ‘Crypto assets have the potential to bring new and innovative changes to the UK financial system, economy and broader society.

‘There are significant concerns around their use to launder funds, purchase illegal products, and evade international sanctions. 

‘We will be investigating the opportunities and risks that crypto presents, where additional regulation may be required, and lessons the Government can learn.’