The United Kingdom’s Action Fraud has revealed that cryptocurrency-linked fraud cases have increased in the past year, reaching 306 million pounds ($378 million). Authorities have proposed regulating the UK’s web3 space, like its gambling sector.
Despite a significant increase in crypto and web3 adoption, scams, hacks, and heists have continued to plague the industry, with recent research data estimating that market participants lost nearly $4 billion to bad actors in 2022 alone.
In the latest development, Action Fraud, the UK’s national reporting center for cybercrime and fraud, has revealed that crypto investors in the country have lost over GBP 300 million to bitcoin-related (BTC) scam schemes over the past year.
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This represents a 41% increase in crypto fraud losses compared to the 216 million pounds lost in the previous year. The report notes that more than a third of the crypto scam incidents occurred in Nov. 2022, coinciding with Sam Bankman-Fried’s FTX scandal.
Curbing the menace
As recently reported by crypto.news, a select group of UK lawmakers has urged authorities to regulate cryptщ like gambling activities since regulating retail crypto trading as financial services could mislead investors.
Last month, reports emerged that the Financial Conduct Authority (FCA) had signaled plans to formulate a crypto regulatory framework in collaboration with web3 businesses in the UK, to ensure compliance with anti-money laundering and counter-terrorist financing (CTF) laws.