<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2026/01/27120458/Bermuda-Partners-with-Coinbase-for-Blockchain-Economy-375x212.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2026/01/27120458/Bermuda-Partners-with-Coinbase-for-Blockchain-Economy-662x374.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2026/01/27120458/Bermuda-Partners-with-Coinbase-for-Blockchain-Economy.webp 686w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2026/01/27120458/Bermuda-Partners-with-Coinbase-for-Blockchain-Economy-662x374.webp" alt="" class="wp-image-9041"/></figure>


The UK government flagged cryptocurrency as a &quot;growing risk&quot; in its newly published Fraud Strategy 2026–2029. Digital assets now sit alongside social media and online payments. All three? Tools that sophisticated scammers exploit.
The <a href="https://www.gov.uk/government/publications/fraud-strategy-2026-to-2029" target="_blank" rel="noopener">strategy</a> aims to coordinate law enforcement, private platforms, and civil society. Tech-driven fraud keeps evolving. Officials say emerging technologies reshape criminal tactics.
The document doesn&#x27;t dedicate a standalone section to crypto. But it highlights digital assets&#x27; role in investment fraud. The strategy calls for stronger coordination across sectors.
New operational measures include a public-private Online Crime Centre. There&#x27;s an expanded &quot;Stop! Think Fraud&quot; awareness campaign. And a unified Report Fraud service designed to streamline responses.
Blockchain analytics firm Chainalysis says crypto volumes are too significant to ignore. Their report shows approximately $17 billion in cryptocurrency reached scam and fraud-linked addresses worldwide in 2025. Industrialized networks drove those numbers. They&#x27;re employing AI-powered tactics and so-called &quot;pig-butchering&quot; schemes.
&quot;Crypto&#x27;s inherent transparency creates a &#x27;powerful flywheel&#x27; for tracking and disrupting criminal flows,&quot; said Jordan Wain, UK Policy Lead at Chainalysis. He contends the UK has led on fraud policy. His recommendation? &quot;Hard-wire&quot; blockchain analytics across banks, fintechs, telecoms, and crypto firms. Leverage the technology&#x27;s traceability.
Geography presents a major enforcement challenge. Chainalysis estimates roughly three-quarters of fraud targeting UK victims originates or is facilitated abroad. The strategy connects cross-border crypto fraud to broader organized crime operations. They span Southeast Asia, South America, and Europe. The report describes them as &quot;poly-criminal&quot; networks linked to trafficking and money laundering.
The UK&#x27;s approach reflects a broader policy tension. Regulators globally face the same problem: exploit blockchain&#x27;s transparency for enforcement. But respect legitimate privacy concerns. The U.S. Treasury recently acknowledged that some previously sanctioned tools can serve lawful privacy purposes. Tornado Cash mixer included. Not all anonymity-seeking behavior is criminal.
The UK strategy frames crypto-enabled fraud as a transnational security issue. Not merely a domestic consumer problem. That signals an intent to influence global standards on digital asset regulation. The government&#x27;s approach seeks to integrate blockchain analytics into existing fraud prevention infrastructure. It&#x27;s not rejecting crypto innovation outright. Other democracies may follow this template. They&#x27;re all balancing enforcement priorities with privacy protections in increasingly digital financial systems.

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The UK government flagged cryptocurrency as a "growing risk" in its newly published Fraud Strategy 2026–2029. Digital assets now sit alongside social media and online payments. All three? Tools that sophisticated scammers exploit.
The <a href="https://www.gov.uk/government/publications/fraud-strategy-2026-to-2029" target="_blank" rel="noopener">strategy</a> aims to coordinate law enforcement, private platforms, and civil society. Tech-driven fraud keeps evolving. Officials say emerging technologies reshape criminal tactics.
The document doesn't dedicate a standalone section to crypto. But it highlights digital assets' role in investment fraud. The strategy calls for stronger coordination across sectors.
New operational measures include a public-private Online Crime Centre. There's an expanded "Stop! Think Fraud" awareness campaign. And a unified Report Fraud service designed to streamline responses.
Blockchain analytics firm Chainalysis says crypto volumes are too significant to ignore. Their report shows approximately $17 billion in cryptocurrency reached scam and fraud-linked addresses worldwide in 2025. Industrialized networks drove those numbers. They're employing AI-powered tactics and so-called "pig-butchering" schemes.
"Crypto's inherent transparency creates a 'powerful flywheel' for tracking and disrupting criminal flows," said Jordan Wain, UK Policy Lead at Chainalysis. He contends the UK has led on fraud policy. His recommendation? "Hard-wire" blockchain analytics across banks, fintechs, telecoms, and crypto firms. Leverage the technology's traceability.
Geography presents a major enforcement challenge. Chainalysis estimates roughly three-quarters of fraud targeting UK victims originates or is facilitated abroad. The strategy connects cross-border crypto fraud to broader organized crime operations. They span Southeast Asia, South America, and Europe. The report describes them as "poly-criminal" networks linked to trafficking and money laundering.
The UK's approach reflects a broader policy tension. Regulators globally face the same problem: exploit blockchain's transparency for enforcement. But respect legitimate privacy concerns. The U.S. Treasury recently acknowledged that some previously sanctioned tools can serve lawful privacy purposes. Tornado Cash mixer included. Not all anonymity-seeking behavior is criminal.
The UK strategy frames crypto-enabled fraud as a transnational security issue. Not merely a domestic consumer problem. That signals an intent to influence global standards on digital asset regulation. The government's approach seeks to integrate blockchain analytics into existing fraud prevention infrastructure. It's not rejecting crypto innovation outright. Other democracies may follow this template. They're all balancing enforcement priorities with privacy protections in increasingly digital financial systems.

UK Government Labels Crypto a 'Growing Risk' in New 2026-2029 Fraud Strategy

UK's new Fraud Strategy 2026-2029 identifies cryptocurrency as a growing fraud risk alongside social media. $17B in crypto reached scam addresses in 2025.