The Economic Crime and Corporate Transparency Bill
The UK’s Economic Crime and Corporate Transparency Bill has passed a third reading in the House of Lords. If officially approved, the legislation will allow authorities to seize cryptocurrencies linked to financial crimes. The bill aims to combat financial crime and protect locals by granting the British authorities additional jurisdiction to confiscate digital currencies used in criminal activities. The National Assessment Center estimates that illicit crypto transactions in the UK reached approximately $1.5 billion in 2021. The bill now moves to the consideration of amendments stage and will eventually require a signature from King Charles III for it to become official.
The FCA’s Warning
The Financial Conduct Authority (FCA) of the United Kingdom has issued a warning to firms marketing cryptocurrencies to British consumers. The FCA expects all domestic firms to comply with the designated promotion regime by October 8, 2023. Firms must introduce promotions through an authorized person and ensure compliance with the FCA’s anti-money laundering requirements. Failure to register can result in up to two years imprisonment, an unlimited fine, or both. The FCA emphasizes that it will take robust action against those illegally promoting to UK consumers, including placing firms on warning lists and requesting takedowns of websites and social media accounts.
Hot Take
The UK’s Economic Crime and Corporate Transparency Bill passing a third reading is a significant step towards combating financial crime and protecting the public. The ability to seize cryptocurrencies linked to criminal activities will provide authorities with greater tools to address illicit transactions. Additionally, the FCA’s warning to firms marketing cryptocurrencies highlights the importance of compliance and safeguards for British consumers. These regulatory measures aim to create a safer and more transparent environment for crypto assets in the UK.
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