The UK Home Office has identified cryptocurrencies as a “growing risk” in its long-term fraud strategy covering the period from 2026 to 2029.
In a policy paper released Monday, officials said digital assets are increasingly used in scams where victims are tricked into voluntarily transferring funds through social media and messaging platforms.
Authorities warned that “vulnerabilities remain” in efforts to tackle fraud involving emerging payment technologies, including crypto.
“The National Crime Agency launched a nationwide campaign in 2025 to help consumers spot fraud, and the Government is also supporting law enforcement, including the Serious Fraud Office, to enhance cryptoasset investigation capabilities,”
The paper said.
The government said measures to address crypto-related fraud include restrictions introduced in 2023 by the Financial Conduct Authority on how crypto companies market tokens to UK consumers.
Meanwhile, HM Treasury is preparing a broader regulatory framework for digital assets expected to take effect in October 2027, which would require crypto companies to obtain FCA authorisation and comply with its rules.
“This is not just about reducing crime; it is about restoring confidence,”
Said Shabana Mahmood and Lord Hanson of Flint in a joint statement.
Separately, lawmakers are also debating whether political parties should be allowed to accept crypto donations after Nigel Farage announced his party would begin accepting digital asset contributions, including a reported $16 million from investor Christopher Harborne.