UK Passes Law to Seize Cryptocurrencies Used in Crimes, Emerges as Leading Crypto Economy
Summary:
The UK has passed the Economic Crime and Corporate Transparency Bill, granting authorities the power to confiscate and suspend cryptocurrencies used in illegal activities. The bill, expected to be law by October 26, aims to tackle digital asset crimes such as cybercrime, scams, drug trafficking, or terrorism-related reasons. The move aligns with the government's economic crime strategy for 2023-2026 to robustly regulate the crypto sphere. Amid these regulatory measures, the UK has emerged as a leading cryptocurrency economy, with London recognized as the world's most crypto-ready city for business.
In a move to curb illegal activities, the United Kingdom legislature has authorized a bill that allows the confiscation and suspension of digital currencies such as Bitcoin (BTC) when they are involved in law-breaking actions. The official U.K. parliament acts database reveals that the Economic Crime and Corporate Transparency Bill is set to become law on October 26, having navigated all parliamentary stages across both chambers.
This bill, introduced in September 2022, aims to enhance the power of authorities in regulating the misuse of cryptocurrencies in criminal activities like internet fraud, deceptive practices, and the narcotics trade. An integral part of the Economic Crime and Corporate Transparency Bill allows for the confiscation of crypto assets used in criminal activities, even in the absence of a conviction. This is because some culprits could evade convictions by remaining distant. The bill also seeks to suppress the usage of digital currencies for terrorist activities or related reasons.
This recent legal progression pertaining to cryptocurrencies in the U.K. is in line with the government’s determination to enforce stringent regulations on the digital asset sphere in a bid to deter their illicit usage. This resolution is incorporated in the economic crime strategy for 2023-2026. Back in March, it was stated by U.K. lawmakers that their goal was to enact the Economic Crime and Corporate Transparency Bill by the end of 2023, alongside the implementation of the Financial Action Task Force's Travel Rule.
In correlation with the U.K's intensified actions against cryptocurrency-related crimes, the nation has risen as a leading cryptocurrency economy. A report produced by Chainalysis, the blockchain analytics firm, in October 2023 states that the U.K. holds the leading position in terms of the raw transaction volume in Central, Northern, and Western Europe for cryptocurrencies. Furthermore, Recap, the cryptocurrency tax platform, reported in February 2023 that London was the global leader in readiness for business involving cryptocurrencies, ranking higher than Dubai and New York.
Published At
10/26/2023 2:08:00 PM
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