UK government‘s long-term fraud strategy labels crypto as ‘growing risk‘

A policy paper from the UK government's Home Office said that “vulnerabilities remain” in authorities' attempts to fight fraud in emerging payments, including digital assets.

The UK government has issued a policy paper on how to combat fraud against individuals and businesses from 2026 to 2029, specifically noting that its strategy would consider digital assets.

In a paper published on Monday, the UK’s Home Office identified cryptocurrencies as one medium of exchange “where victims are deceived into willingly transferring money” through scams on social media platforms and messaging. According to authorities, “vulnerabilities remain” in their attempts to fight fraud in emerging payments like crypto, and the technology posed “growing risks” for consumers.

“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 (SFO), to enhance cryptoasset investigation capabilities,” said the UK government.

Measures already taken by the government include the Financial Conduct Authority’s (FCA) crackdown on crypto companies marketing tokens to UK consumers that began in 2023, and HM Treasury introducing a comprehensive regulatory framework for digital assets set to be implemented in October 2027. The paper said that requiring crypto companies “to obtain FCA authorization and comply with its rules” would help fight related fraud.

Related: French couple robbed of $1M in Bitcoin by criminals posing as police

“This is not just about reducing crime; it is about restoring confidence,” said Home Secretary Shabana Mahmood and Minister of State at the Home Office, Lord Hanson of Flint. “Every pound stolen through fraud is a pound not reinvested in our economy. Every victim is a reminder of why we must act. By delivering this Strategy, we will make the UK a safer place to live, work, and do business, and send a clear message to criminals: there is nowhere you can hide.”

While the policy paper focused on fraud, it did not explicitly mention an ongoing debate in the UK over whether political parties and candidates should be allowed to accept contributions in digital assets, given potential conflicts of interest. The UK government has reportedly been considering a ban on such contributions as part of an Elections Bill.

At the Bitcoin 2025 conference last year, UK Reform leader Nigel Farage said that the party would begin accepting donations in crypto. Early crypto investor Christopher Harborne sent a combined $16 million to Reform through donations in 2025.

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Source: CoinTelegraph