UK Government Takes Action Against Economic Crime in the Crypto Market
The UK government has passed the Economic Crime and Corporate Transparency Act, a significant step in combatting economic crime within the crypto market. The law, enacted on October 26, aims to address fraud and money laundering, enhancing the safety of the UK’s open economy.
Companies House Empowered to Remove Fraudulent Companies
One key aspect of the Act is the expanded role granted to Companies House, an executive agency responsible for company registration. It now has the authority to thoroughly verify the identities of company directors, enabling the removal of fraudulent entities from the official register and facilitating information sharing with law enforcement agencies.
Increased Power for Law Enforcement to Seize Cryptocurrencies
The Act also grants law enforcement greater authority to seize and manage cryptocurrencies commonly used in illicit financial activities. This change will aid in addressing false lawsuits and holding large corporations accountable for their misconduct.
Home Secretary Suella Braverman emphasized that this legislation will help combat organized crime related to terrorist financing, fraud, and money laundering, ultimately enhancing national security.
“I am committed to ensuring criminals do not profit from their offending and this landmark act will help law enforcement clampdown on the tactics they use. It will have a big impact on our ability to fight organised crime, including terrorist funding, fraud and money laundering, and that will ultimately help keep us all safe,” Braverman said.
Business Minister Kevin Hollinrake also supported the Act, stating that it will address criminals who exploit the UK’s open economy. These reforms will prevent companies from hiding behind false identities and provide clearer information about companies engaged in wrongdoing.
“These reforms will remove the smoke and mirrors around companies hiding behind false identities, provide further protection to the public from companies fraudulently using their addresses, and deliver better data to support business and lending decisions across the economy,” Hollinrake said.
Significant Changes to Companies House and Targeting of Illegal Cryptocurrencies
This Act represents the most significant transformation in Companies House’s 180-year history. It will swiftly eliminate fraudulent company addresses, improving the quality of information in the company register.
In addition, law enforcement’s new ability to target illegal cryptocurrencies is a significant development, particularly in light of the National Crime Agency’s discovery that over $1.2 billion in illegal funds were transferred overseas using cryptocurrencies in 2021.
The Act enables the police and the National Crime Agency to seize cryptocurrencies and convert them into cash prior to a legal hearing. The UK government’s strong stance against crypto misuse demonstrates its commitment to purging the economic landscape of illicit financial activities, ensuring a level playing field for all businesses.
Hot Take: UK Government Bolsters Anti-Crime Measures in Crypto Space
The Economic Crime and Corporate Transparency Act passed by the UK government marks a significant milestone in combatting economic crime within the crypto market. By empowering Companies House to identify fraudulent companies and granting law enforcement increased authority to seize cryptocurrencies, the Act enhances the security and integrity of the UK’s open economy.
These measures demonstrate a commitment to tackling organized crime linked to terrorist financing, fraud, and money laundering. As cryptocurrencies continue to be utilized for illicit financial activities, this legislation serves as a powerful tool in deterring criminals and creating a fair business environment.
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