A prominent Manchester-based law firm has set up a dedicated cryptocurrency investigations and prosecutions team in response to the increasing demand for expert advice in this rapidly growing area.
JMW’s newly formed team, part of their business crime department, is poised to provide specialised guidance to both individuals and businesses facing scrutiny or legal action related to their use of cryptocurrencies. The initiative is led by partner Mike Rainford, who emphasised the transformative potential of cryptocurrencies such as Bitcoin, Ripple, Ethereum, and Litecoin on global business. However, he also highlighted the accompanying risks, including money laundering and non-compliance with HM Revenue & Customs’ tax regulations and the Financial Conduct Authority’s financial regulations.
Rainford commented, “Cryptocurrencies facilitate the fast and effective flow of funds, and are expected to have a major impact on global business.” However, he warned, “As the uptake of cryptocurrencies grows, so does the risk of money laundering and the potential for failing to adhere to HM Revenue & Customs’ tax regulations and the Financial Conduct Authority’s financial regulations.”
He further predicted a surge in investigations and prosecutions and emphasised that their specialist business crime solicitors are prepared to offer pragmatic advice and representation to those potentially ensnared by these issues. JMW is breaking new ground as the first law firm outside London to offer such a specialised service. The newly formed team includes trainee solicitor Rob Eakins, a blockchain technology expert.
Blockchain technology creates an online ledger of every transaction made via a cryptocurrency, and Eakins’ expertise is expected to be a significant asset to the team. Rainford elaborated, “Given the current relative anonymity of cryptocurrency transactions, they clearly offer new opportunities for criminals to launder money, and they may involve reputable businesses in the process.”
He further advised, “Business owners and staff alike must be vigilant, and avoid being drawn into the laundering of the proceeds of crime.”
Rainford also noted the increased scrutiny at both EU and UK government levels, mentioning Britain’s updates to its anti-money laundering regulations to account for cryptocurrencies. Concurrently, HM Revenue & Customs has stipulated that payments in cryptocurrencies are subjected to the same tax regime as those made in traditional fiat currencies, dispelling any notions of tax evasion through digital currencies.
The formation of this specialist team by JMW underscores the urgent need for expert legal guidance in the burgeoning field of cryptocurrencies. As regulatory scrutiny intensifies, businesses and individuals must stay informed and compliant to navigate the complex landscape.