A report by the Finance Innovation Lab reveals that £325 billion of illicit funds flow through the UK annually, posing a challenge to the government's plans to establish London as a global crypto hub. Including crown dependencies and overseas territories, this figure exceeds £788 billion. The report highlights the UK's role in facilitating financial crime, money laundering, and tax evasion, urging a pause on crypto expansion plans due to the sector's links to money laundering. The findings coincide with the delay of the Illicit Finance Summit and have sparked calls for increased funding for investigative bodies like the National Crime Agency. The all-party parliamentary group on anti-corruption supports these recommendations, emphasizing the need for transparency in overseas territories. The government has responded by highlighting its anti-corruption strategy and plans to recruit additional compliance officers, while new crypto regulations aim to integrate the sector into the UK's regulatory framework by 2027.