The UK’s National Economic Crime Centre (NECC) is in the process of developing a more proactive and intelligence-led crypto capability to counter the increasingly sophisticated ways criminals are using digital assets for illicit finance. This strategic shift is highlighted in the agency’s latest report, which also notes that cryptoassets have been elevated to a top priority in the nation’s economic crime strategy.
Criminals are demonstrating “innovative use of crypto asset products to evade detection and move illicit value at scale,” according to the NECC. These illicit networks are proliferating across borders and combining “novel and traditional” methods to launder money. A notable trend is the outsourcing of money laundering activities, with many organized crime groups now paying dedicated networks for these services. Furthermore, criminals are leveraging advanced techniques such as artificial intelligence, synthetic identities, and process automation against financial institutions.
In response to these evolving threats, the NECC is developing “a more proactive and intelligence-led crypto capability to inform our response to cross-cutting priorities.” This indicates a move away from relying solely on referrals and towards generating its own targets. The agency plans to expand its successful Operation Destabilise approach to other “high harm money laundering networks which pose the greatest illicit finance risk to the UK.”
Cryptoassets as a Top Priority
Cryptoassets have been elevated to a significant position within the UK’s economic crime priorities. As of July 2025, they rank third among nine key areas agreed upon by the NECC, the Financial Conduct Authority, the Home Office, and the Treasury. This ranking places crypto above other significant threats like criminal cash and money mules, directing regulatory compliance efforts within firms.
Enforcement Operations Yield Results
The NECC’s efforts are already yielding results through targeted operations. Operation Atlantic, a joint initiative with the U.S. Secret Service, Coinbase, Binance, Kraken, and Tether, identified 20,000 approval-phishing victims in March and resulted in the freezing of $12 million. Operation Destabilise, focused on Russian-speaking networks converting street cash into crypto, has coincided with 129 arrests and the seizure of over £25 million in the UK.
Debate on Privacy Tools
Amidst these enforcement actions, a nuanced discussion is emerging around the use of privacy-enhancing technologies (PETs) in crypto. A report by the Royal United Services Institute (RUSI), drawing from a July 2025 roundtable hosted by the NECC, suggests that outright bans on privacy tools could be counterproductive. Participants argued that prohibition would push illicit actors onto unregulated services, reducing transparency and making it harder for investigators to gather information. They posited that building trust through compliance features would ultimately expand the legitimate use of the technology.
However, uncertainties remain regarding the full scope of the NECC’s new crypto capability and the precise nature of the “novel and traditional” laundering methods being employed. The agency’s report signals a determined and evolving strategy to confront the complex challenges posed by crypto-enabled financial crime.
Why This Matters
The NECC’s annual report underscores the growing threat of crypto-enabled financial crime, with criminals increasingly using digital assets for illicit purposes. The agency’s strategic shift towards a more proactive capability and the prioritization of cryptoassets reflect the evolving landscape of economic crime and the need for adaptive law enforcement responses.
Broader Context
The NECC is a National Crime Agency unit coordinating the country’s response to economic crime. This report highlights the agency’s efforts to adapt its strategy to address the specific challenges posed by the innovative use of crypto assets in money laundering and other illicit activities.
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