The Law Society of England and Wales has advised its members to treat bitcoin like cash and be aware of the potential money laundering risks when customers use BTC for transactions.
The legal group believes that acquiring real estate with bitcoin investment income requires members of the association to identify the source of the money used to buy bitcoins.
“This is a cash transaction, so there is a high risk of money laundering. There is a significant risk in this transaction that bitcoin may be obtained through criminal activity,” the warning says.
The lawyers added that in accordance with rule 33 of the Anti-Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, members of the association must apply enhanced precautions, dictated by the level of risk and obligations regarding the source of funds.
The commission’s announcement is likely to have far-reaching implications for crypto investors, who will seek legal advice to make deals using crypto investment returns.
Last month, a member of the England and Wales Law Commission said that UK property laws need to be extended to cryptocurrencies and non-fungible tokens (NFTs).