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Law Society of England and Wales Tells Members to Be Wary of Bitcoin Use in Transactions
"This is a cash transaction so there is a high risk of money laundering," the professional body told its members.
The Law Society of England and Wales said members should treat bitcoin (BTC) as cash and be aware of potential money laundering issues when clients choose to use the cryptocurrency for transactions.
Responding to a question seeking advice on the purchase of a property with the proceeds of bitcoin investment, the professional association for lawyers said while there is no specific guidance, members need to establish the source of funds used to buy the bitcoin.
Story continues
"This is a cash transaction, so there is a high risk of money laundering," it said in a post on its website. There is a "significant risk" in this transaction that the bitcoin "may be derived from criminal activity."
"Under regulation 33 of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, you must apply enhanced due diligence (EDD) measures dictated by the level of risk and obligations on source of wealth and source of funds."
Membership of the society is included in the cost of a practicing certificate for solicitors in England and Wales. Its judgement on bitcoin therefore is likely to have far-reaching implications for how bitcoin is treated.
Read more: Citi Flags Crypto-Backed Real Estate Mortgages Amid Falling Market Conditions
Jamie Crawley
Jamie has been part of CoinDesk's news team since February 2021, focusing on breaking news, Bitcoin tech and protocols and crypto VC. He holds BTC, ETH and DOGE.
