The UK鈥檚 intelligence agencies have asked Europe鈥檚 largest cryptocurrency exchange, Bitstamp, to hand over information on at least some of its customers. The news suggests that bitcoin and other cryptocurrencies are being used in serious organised crime and terrorism, as well as domestic crime.
The Security Service, also known as MI5, is responsible for preventing terrorism and espionage within the UK, while the Secret Intelligence Service, commonly known as MI6, is tasked with foreign intelligence. Neither organisation tackles ordinary crime, unless there is a threat to national security, and until now no cryptocurrency investigations have been confirmed.
In January, a 快猫短视频 investigation revealed that UK police forces have seized over 拢300 million in bitcoin and other cryptocurrencies in the past five years. At the time of that investigation, MI5, MI6 and GCHQ, the UK鈥檚 other intelligence agency, all refused to answer queries about whether they, too, had investigated cryptocurrency-related crimes.
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But Mel Tsiaprazis at Bitstamp told 快猫短视频 that both MI5 and MI6 have made specific requests to the exchange for information. Bitstamp is Europe鈥檚 largest cryptocurrency exchange, based in Luxembourg, and sees daily transaction volumes of more than 拢100m.
鈥淲e鈥檝e had requests from MI5, MI6, the police forces in the UK 鈥� as long as it鈥檚 being asked in the regulated way, we work with authorities,鈥� says Tsiaprazis. 鈥淲e鈥檙e very active in working with both regulators and law enforcement all across Europe, and also in the US now as well with our licences there. We just get the requests and then we action that request, and we just focus on how we can help them.鈥�
鈥淚t actually works the reverse as well. So as a regulated organisation where we very much look at every single transaction, and if there鈥檚 anything there that we鈥檙e kind of concerned about, we actually report it to the authorities.鈥�
Tsiaprazis declined to provide specific details, but the involvement of MI6 and MI5 suggests that cryptocurrency has been used in serious organised crime and terrorism.
Cryptocurrencies can easily be used to funnel money across borders, making them an ideal tool for laundering and transferring the proceeds of crime around the world. They are also decentralised by design, so there is no authority that police or security services can turn to for information when looking for transaction records, nor is there any central authority that can be made to hand over funds at the request of the state.
Exchanges such as Bitstamp, which temporarily take control of funds when they are used to transfer or store cryptocurrencies, offer a way in for the state, as the companies often have to record information about customers to comply with financial regulations in certain countries.
GCHQ didn鈥檛 respond to queries about any cryptocurrency investigation, while MI6 declined to comment on intelligence matters. But at Brunel University London says that security service interest in cryptocurrencies聽could be due to a number of activities, including serious organised crime, suspicious financial assets being moved to the UK or terrorism.
鈥淭here鈥檚 always been this suspicion that cryptocurrency is used by shady people to conduct shady dealings,鈥� says Lomas. 鈥淭hat鈥檚 never been a secret. The fear has always been that this can be used by people wanting to conduct harm against the UK鈥檚 economic interests. There鈥檚 always been the argument that criminal activity can be used to generate financing that can then be used for terrorist purposes.鈥�
The Home Office, which oversees MI5, said that it is 鈥渨orking closely with its operational partners and with academia to crack down on the abuse of crypto assets鈥�.
鈥淭his includes the consideration of new powers to more easily seize crypto assets quickly, as well as making sure law enforcement have the right tools and training to investigate this issue,鈥� it said.
