Record Crypto Fraud Sparks Urgent Call for Cross-Industry Collaboration

The cryptocurrency sector is confronting a staggering $9.9 billion fraud epidemic in 2024, with alarming new reports revealing 90% of UK crypto applications fail basic anti-money laundering checks. As criminals increasingly exploit blockchain networks to launder traditional finance fraud proceeds, industry leaders are pointing to data sharing as the critical missing defense mechanism.

Fraud Evolution Outpaces Isolated Defenses

Cifas CEO Mike Haley warns that conventional anti-fraud measures can't keep pace with sophisticated schemes ranging from Ponzi schemes to "address poisoning" attacks. 【$1.2 million】 was recently stolen through law enforcement impersonation scams targeting crypto wallet holders, demonstrating criminals' evolving tactics.

——The industry needs bolder anti-financial crime data sharing to match TradFi's collaborative approaches—— Haley emphasizes, citing Singapore's mandatory data-sharing regime between financial and telecom sectors as a proven model.

Three-Pronged Solution for Crypto Compliance

1. Fiat-Crypto Chokepoints: Enhanced monitoring of currency conversion points where criminals move funds between traditional and digital systems

2. AML Data Integration: Building fraud detection systems that incorporate intelligence from across the financial ecosystem

3. Compliance Knowledge Transfer: Leveraging established anti-fraud expertise from traditional finance sectors

UK Emerges as Testing Ground for New Framework

The UK's evolving regulatory landscape creates unique opportunities for crypto compliance innovation. Recent Data (Use and Access) Act 2025 amendments explicitly recognize crime prevention as a legitimate data sharing purpose, while financial watchdogs increasingly emphasize cross-sector collaboration through initiatives like the Joint Money Laundering Intelligence Taskforce.

With cryptocurrency scams projected to worsen in 2025, industry stakeholders face mounting pressure to move beyond isolated solutions. As Haley concludes: ——Joining the global fraud data-sharing ecosystem isn't just about compliance—it's about securing crypto's future as a trusted financial infrastructure——