A New Law to Combat Crypto Crime
A new law has been enacted in the U.K. that grants law enforcement agencies expanded powers to seize, freeze, and recover cryptocurrency assets. The Economic Crime and Corporate Transparency Act 2023 aims to combat fraud, corruption, and support legitimate business activities. This law allows police to more easily confiscate crypto assets and convert them into cash even before a forfeiture hearing takes place. In exceptional cases, authorities will also have the power to destroy seized digital currencies.
Economic Crime and Corporate Transparency Act 2023
The U.K. government announced the enactment of the Economic Crime and Corporate Transparency Act 2023, following a year of debates and amendments in Parliament. The act empowers British authorities to proactively target organized criminals and individuals looking to exploit the country’s open economy. Law enforcement agencies will have enhanced abilities to seize, freeze, and recover cryptoassets. Additionally, the National Crime Agency (NCA) will be granted greater authority to compel businesses to provide information suspected of being used for money laundering or terrorist financing.
Cracking Down on Illicit Cryptoassets
The new legislation is seen as a long-awaited and welcome development by Graeme Biggar, Director General of the NCA. The British government emphasizes that the act introduces provisions allowing law enforcement agencies to specifically target illicit cryptoassets. According to estimates from the NCA’s National Assessment Centre, over £1 billion worth of illicit cash was transferred overseas using cryptocurrencies in 2021 alone.
Under this act, police and the NCA can seize cryptoassets more easily and convert them into cash before a forfeiture hearing. In rare cases, they may also have the authority to destroy seized digital currencies.
Hot Take: Enhancing Crypto Asset Seizure
The implementation of the Economic Crime and Corporate Transparency Act 2023 in the U.K. represents a significant step towards combating crypto-related crimes. The law grants law enforcement agencies greater powers to seize, freeze, and recover cryptocurrency assets, aiming to target organized criminals and those exploiting the country’s open economy. By allowing authorities to convert seized cryptoassets into cash before a forfeiture hearing, the act strengthens the ability to disrupt illicit financial activities. With the increasing use of cryptocurrencies for money laundering and terrorist financing, this legislation provides an important tool in safeguarding against these threats.
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