UK Lawmakers Greenlight Bill to Seize Cryptocurrencies in Criminal Cases; Country Emerges As Crypto Leader
Summary:
The United Kingdom lawmakers have approved the Economic Crime and Corporate Transparency Bill to let authorities seize and freeze digital currencies like Bitcoin (BTC) used in unlawful activities. The legislation, set to receive royal assent by Oct. 26, aims to strengthen regulatory powers against the misuse of cryptocurrencies in crimes like cybercrime and drug trafficking. It aligns with the government's strategy to robustly regulate crypto assets from 2023 to 2026 to combat economic crimes. Despite the clampdown on crypto-related offenses, the U.K. has surfaced as a significant cryptocurrency economy, leading in total transaction volume in Central, Northern, and Western Europe. Its capital, London, was ranked as the most crypto-ready city for business globally.
The United Kingdom's political representatives have endorsed a law which grants the capability to authorities to confiscate and put a hold on digital currencies including Bitcoin (BTC) if leveraged for unlawful activities. As indicated by the official documentation on the U.K.'s parliamentary activities site, the Economic Crime and Corporate Transparency Bill is set to gain royal approval on Oct. 26, this implies that the bill would advance through all legislative stages in the two parliamentary houses.
The law, which was proposed in September 2022, aims to enrich authorities' powers to target the exploitation of cryptos in illegal activities such as fraud, cybercrime, and drug trade. A particular clause within the Economic Crime and Corporate Transparency Bill allows the retrieval of crypto assets linked to crimes even if no conviction is mad, considering the fact that certain offenders might evade legal punishment by remaining distant. The law also seeks to oppose the usage of digital currencies for any operations tied to terrorism or similar grounds.
The newest legal venture concerning cryptocurrencies in the U.K. is in line with the government's scheme to "robustly" supervise cryptos to counteract the illegitimate utilization of digital currencies, forming a part of its economic crime strategy between 2023 and 2026. In March, U.K. politicians stated their ambition to green-light the Economic Crime and Corporate Transparency Bill by the final quarter of 2023, alongside incorporating the Financial Action Task Force’s Travel Rule.
Despite the U.K. government's continuous clampdown on crypto-related illicit activities, the nation has established itself as a significant player in the cryptocurrency market. As per a report by blockchain analytics firm Chainalysis from October 2023, the U.K. leads Central, Northern and Western Europe in terms of total transaction volume using cryptocurrencies.
By February 2023, it was reported by crypto tax platform Recap that London outperformed Dubai and New York as the most crypto-friendly city for business worldwide. The growth of blockchain analysis firms like Chainalysis can be traced back to the collapse of Mt. Gox, as detailed in a recent feature in a magazine.
Published At
10/26/2023 2:08:16 PM
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