UK Lawmakers Pass Legislation to Seize and Freeze Cryptocurrencies for Illicit Use
The United Kingdom has passed a new law that allows authorities to seize and freeze cryptocurrencies like Bitcoin if they are used for illicit purposes. The Economic Crime and Corporate Transparency Bill is expected to receive royal assent on October 26, after completing all stages in both houses of parliament. The legislation aims to give authorities more power to crack down on the use of cryptocurrency in crimes such as cybercrime, scams, and drug trafficking.
Recovering Crypto Assets Used in Crimes
One provision of the bill allows for the recovery of crypto assets used in crimes without conviction, as some individuals may avoid conviction by staying remote. The legislation also seeks to combat the use of digital assets for terrorism or related purposes.
Aligning with Government Plans
This latest development aligns with the UK government’s goal of robustly regulating crypto to combat its illicit use. In March, lawmakers stated their intention to pass the Economic Crime and Corporate Transparency Bill by Q4 2023, along with adopting the Financial Action Task Force’s Travel Rule.
The UK’s Growing Crypto Economy
While cracking down on crypto-related crimes, the UK has become a major cryptocurrency economy. According to Chainalysis, it is the largest crypto country in terms of transaction volume in Central, Northern, and Western Europe. London was also named the world’s most crypto-ready city for business by Recap in February 2023, surpassing Dubai and New York.
Hot Take: UK Legislation Strengthens Fight Against Illicit Crypto Use
The passage of the Economic Crime and Corporate Transparency Bill in the UK marks a significant step in combating the illicit use of cryptocurrencies. By granting authorities the ability to seize and freeze crypto assets used in crimes, the legislation aims to deter cybercrime, scams, and drug trafficking. It also demonstrates the UK government’s commitment to robustly regulating the crypto industry and aligns with its economic crime plan. As the largest crypto country in Europe, the UK continues to solidify its position in the global cryptocurrency economy. The enactment of this law further strengthens the fight against illicit crypto activities and enhances trust in the digital asset space.
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