Last week, the United Kingdom’s National Crime Agency said it had uncovered a massive, multibillion dollar money laundering operation out of London, Moscow and Dubai that enabled criminals to evade sanctions with the help of cryptocurrency. This includes Russian oligarchs and drug traffickers. It’s just the latest case of how those cut off from the banking system use crypto to move money.

For more on this and the wider crypto landscape, “Marketplace Morning Report” host David Brancaccio spoke with Ari Redbord, vice president and global head of policy and government affairs at TRM Labs. The cryptocurrency compliance firm just released its annual report on cryptocurrency adoption and illicit crypto activity. The following is an edited transcript of the conversation.

David Brancaccio: What are early lessons you’re drawing from this drama in Europe? The U.K.’s National Crime Agency calling this the most significant money laundering operation it has ever investigated. I mean, I think oligarchs — especially from Russia — facing sanctions were using some of these systems to get around the traditional banking system.

Ari Redbord: It’s a really extraordinary case. And the National Crime Agency of the U.K., really, for years, has been investigating what they call “Operation Destabilize.” And it’s basically been going after networks of money laundering operators, and they’ve linked Russian companies to organized crime, drugs, cybercriminal activity across more than 30 countries. There’s been a number of arrests, and, yeah, there was some use of cryptocurrency to move and launder funds in the course of this investigation.

Brancaccio: I guess the thing about crypto is that there is an electronic ledger that’s hard to falsify, and sometimes the authorities can use that to catch the bad guys.

Redbord: Yeah, this is really an only-in-crypto kind of investigation, where every transaction is logged and immutable on a public ledger, which allowed the NCA to track and trace the flow of funds across countries. I think, oftentimes, we talk about financial crime in crypto and less about the way we’re able to actually utilize the technology to take down money laundering networks.

Brancaccio: OK, so if one is not an oligarch interested in money laundering or an investigator trying to track that down, your report also highlights what the stuff is good for, beyond — I don’t know — the warm feeling of coolness some get at avoiding the traditional money system.

Redbord: Anyone with a phone — so sort of the unbanked corners of the world — are able to access the financial system. And one of the big takeaways from our report is that we’re seeing adoption — the top five countries leading crypto adoption in 2024 are India, Indonesia, Nigeria and also the United States. But we’re seeing a lot of crypto activity in the developing world, because it allows access to financial services for people who would never have access to a bank account.

Brancaccio: In the United States, the President-elect has appointed a guy named David Sacks, a [venture capitalist] from Silicon Valley, to be the czar for artificial intelligence, but also your field, crypto.

Redbord: Yeah, really excited about this appointment. But it was also, you know, the [nominees for] U.S. Treasury secretary, the SEC chair, are now going to all be people who have some experience in this space. So, really excited to see a move toward legislative frameworks, regulatory frameworks that encourage innovation.

Brancaccio: I mean, some experts are expressing concern that maybe the new administration might be prone to apply just a lighter touch to this. I don’t think that you would want something close to a free-for-all in the space.

Redbord: Yeah, quite the opposite. I think what I’m really looking forward to is less enforcement on lawful businesses that are looking to offer crypto exposure to clients, to individuals. And, at the same level, or even more focus, on the fraudsters and the scammers out there.