The professional group told its members, “This is a cash transaction, so there is a high risk of money laundering in Bitcoin Transactions.”
The Law Society of England and Wales told its members that Bitcoin Transactions should be treated like cash and that they should be aware of the possibility of money laundering when clients use cryptocurrency for transactions.
In response to a question about buying a house with bitcoin investment money, the professional association for lawyers said that there is no specific advice but that members need to find out where the money came from to buy the bitcoin.
It said on its website, “This is a cash transaction, so there is a high risk of money laundering.” In this deal, there is a “significant risk” that the bitcoin “may have come from criminal activity.”
“Regulation 33 of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 says that you must use enhanced due diligence (EDD) measures based on the level of risk and obligations on the source of wealth and source of funds.”
The cost of a practicing certificate for solicitors in England and Wales includes membership in the society. Because of this, its decision on bitcoin is likely to have a big impact on how bitcoin is treated.