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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.
Updated May 11, 2023, 3:41 p.m. Published Aug 24, 2022, 4:22 p.m.
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.
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"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
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CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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