By Nermeen Nabil 
The Swedish Police Authority and the Financial Intelligence Unit (FIU) have declared war on crypto exchanges. They referred to them as “professional money launderers” (PML).
This classification is from a study of the illicit and unapproved crypto services. So, what does this mean for crypto exchanges and users in Sweden? The FIU said that Crypto exchanges do not carry out every transaction. However, with these platforms, criminals can conceal their money laundering crimes and activities. This article explains it in simple terms.
Breaking Down the Types of Crypto Exchange Profiles
The FIU investigation also discovered that not all crypto exchanges are identical. They categorized the PMLs into four profiles:
The Node Exchange Provider: They operate like nodes in a network, so several individuals take part in swapping tokens.
The Hawala Exchange Provider: It involves moving money through informal networks without physically passing on the money.
The Asset Exchange Provider: They list many digital assets through which they help finance large volumes of cryptocurrencies.
The Platform Exchange Provider: Larger, more sophisticated platforms allow users to trade cryptocurrencies on a broader scale. They are easy targets for thieves looking to hide money.
The Swedish Police Authority and Financial Intelligence Unit (FIU) has classified cryptocurrency exchanges as “professional money launderers (PML)
Sidoo kale list waxay ku dareen hawala system pic.twitter.com/WTk8sshkm1
— Berkan (@cryptostocks247) September 24, 2024
The Government’s Response
Swedish authorities are not disregarding these activities. The report includes an appeal to increase law enforcement activity on crypto trading platforms. Some regard unauthorized crypto exchanges as a new variant in organized criminal activity. Many legitimate exchanges operate without violating the law.
These legitimate exchanges are not significant participants in money laundering. The report also shows that most crypto exchanges are part of this money laundering activity. Some of these exchanges can observe uncommon activities, flag them, and block the culprits.
SWEDEN CRACKS DOWN ON CRYPTO EXCHANGES AND MINING
Sweden’s authorities have labeled cryptocurrency exchanges as “professional money launderers” (PML) after analyzing unlicensed providers linked to organized crime.
The Financial Intelligence Unit (FIU) identified four PML… pic.twitter.com/2XXeOgbvWe
— Crypto Town Hall (@Crypto_TownHall) September 24, 2024
Sweden’s Focus on Bitcoin Mining and Tax Evasion
Money laundering is one of many areas where Swedish officials are cracking down on crypto operations. The Swedish Tax Agency also reviewed the activities of 21 cryptocurrency mining firms. The study showed that eighteen firms reported false or incomplete tax information.
The false tax information resulted in a $90 million tax demand.
The issue? Many businesses avoid the value-added tax (VAT). They give inaccurate crypto holdings reports or operations. However, since the two companies got their appeals right in the court, the others continue to endure severe tax penalties.
Conclusion
In Sweden, crypto exchanges are under supervision. Swedish authorities sign a zero-tolerance approach to financial crimes in the crypto space. They categorize these exchanges as professional money launderers.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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