A policy paper from the UK government’s Home Office said “weaknesses remain” in the authorities’ efforts 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] Launching 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 cryptocurrency investigation capabilities,” the UK government said.
Steps already taken by the government include the Financial Conduct Authority (FCA) launching a crackdown in 2023 on crypto companies selling tokens to UK consumers and HM Treasury introducing a comprehensive regulatory framework for digital assets to come into force in October 2027. The paper says it will help fight related fraud by requiring crypto companies to “obtain FCA authorization and comply with its regulations.”
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Home Secretary Shabana Mahmood and Minister of State for Home Affairs, Lord Hanson of Flint, said, “This is not just about reducing crime; it is about restoring trust.” “Every pound stolen through fraud is a pound not reinvested in our economy. Every victim is a reminder of why we must act. By implementing 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 no place you can hide.”
Investigation into crypto contributions to UK politicians
While the policy paper focused on fraud, it did not explicitly mention the ongoing debate in the UK over whether political parties and candidates should be allowed to accept contributions to digital assets given the potential conflict of interest. The UK government is reportedly considering banning such contributions as part of the Elections Bill.
Last year at the Bitcoin 2025 conference, UK reform leader Nigel Farage said the party would start accepting donations in crypto. Early crypto investor Christopher Harborne sent a combined $16 million toward improvements through donations in 2025.
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