Five global tax enforcement agencies have issued alerts warning that over-the-counter cryptocurrency trading desks and payment processors are being exploited to hide criminal funds and evade taxes. OTC desks now handle USD 1.44 billion in daily trading with USD 236 billion in suspicious activity reported, while payment processor-related suspicious activity has surged over 1000% since 2020.
The Joint Chiefs of Global Tax Enforcement (J5) published two law enforcement advisories on 11 February 2026 that detail how over-the-counter (OTC) cryptocurrency trading desks and cryptocurrency payment processors may be used to obfuscate and move funds tied to criminal activity.
The J5 consists of five tax enforcement agencies: the Australian Taxation Office (ATO), Canada Revenue Agency (CRA), Dutch Fiscal Information and Investigation Service (FIOD), HM Revenue & Customs (HMRC), and the Internal Revenue Service Criminal Investigation (IRS-CI).
The reports can be accessed on the J5’s website:
Recent estimates suggest that OTC trading desks – platforms that enable individuals to buy and sell digital assets outside of a public exchange – account for a large share of cryptocurrency trading activity, with daily trading activity totalling USD 1.44 billion compared to USD 74.51 million at cryptocurrency exchanges. These desks provide clients with anonymity and reliability when moving large sums of money or cryptocurrency, thus potentially functioning as an obfuscation tool for tax evaders and money launderers. To date, nearly USD 236 billion in suspicious activity has been reported to the Financial Crimes Enforcement Network connected to these trading platforms.
Cryptocurrency payment processors enable direct payment for goods and services using digital assets. While these platforms offer fast and convenient transactions, they can also be used to hide and spend illegally obtained digital assets or to commit tax evasion. From 2020 to 2024, suspicious activity reports tied to these processors increased by more than 1000%. To date, financial institutions and digital asset providers have reported USD 5 billion in suspicious activity to the Financial Crimes Enforcement Network associated with cryptocurrency payment processors.
The J5 recommends that financial intelligence units leverage specific keyword searches when reviewing suspicious activity reports to identify transactions or patterns indicative of money laundering or tax evasion taking place on these platforms.
In September 2024, the J5 Cyber Challenge focused on data involving OTC cryptocurrency trading desks and cryptocurrency payment platforms and served as the basis for publishing the advisories. J5 Cyber Challenges bring experts from J5 member countries together to review data and identify quality leads from a variety of open and investigative sources.
By sharing intelligence, conducting coordinated operations, and leveraging advanced technology, this global task force has built a track record of uncovering schemes that would be nearly impossible for a single country to dismantle alone.
