Cryptocurrencies Transactions in the UK Real Estate Market: Threat or Opportunity for Anti-Money Laundering?

In recent years, the use of cryptocurrencies in various sectors of national economies has become extremely popular, attracting praise and criticism. These transactions have sparked debate about the potential money laundering risks associated with the use of cryptocurrencies. In particular, these concerns pertain to their high-level anonymity and the danger of criminal infiltration of important economic sectors such as the real estate market. However, the discussion on the topic is quite scattered and unsatisfactory, with many unanswered questions and legislative initiatives that have only partially tackled the issue. This chapter focuses on the use of cryptocurrencies in the UK real estate market, assessing some of the critical points that emerge from their employment in property transactions. The UK real estate market is a particularly relevant case study. Indeed, recently, it has been at the centre of debate for its vulnerability to money laundering practices and the challenges it presents for implementing AML regulation. The author addresses the question of whether the use of cryptocurrencies represents a threat or an opportunity for the AML regime concerning the property sector. This study aims to identify key aspects that future legislative and policy actions should consider to strike a balance between using cryptocurrencies and the need to protect the real estate market from criminal activities.