In a significant legislative move, authorities in the United Kingdom have successfully passed a new law that empowers them to seize and freeze cryptocurrencies such as Bitcoin if they are found to be involved in illicit activities.
The legislation, known as the Economic Crime and Corporate Transparency Bill, is poised to receive royal assent on October 26, marking the completion of all necessary stages in both houses of parliament.
This development comes after the bill was introduced in September 2022.
The primary objective of this legislation is to bolster the government’s capacity to combat cryptocurrency-related crimes, particularly in areas such as cybercrime, scams, and drug trafficking.
One notable provision in the bill allows for the confiscation of crypto assets even without a formal conviction, as some wrongdoers may operate from remote locations.
Additionally, the legislation has been designed to address concerns related to the use of digital assets for terrorism and associated activities.
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This latest legal development aligns with the U.K. government’s broader strategy to establish robust regulatory frameworks for cryptocurrencies in order to curtail their illicit usage.
This strategy is part of the government’s economic crime plan, spanning from 2023 to 2026.
Back in March, U.K. lawmakers announced their intentions to pass the Economic Crime and Corporate Transparency Bill by the fourth quarter of 2023, along with adopting the Financial Action Task Force’s Travel Rule.
Remarkably, as the U.K. intensifies its efforts to combat crypto-related crimes, it has also emerged as a prominent player in the cryptocurrency industry.
According to a report released in October 2023 by blockchain analytics firm Chainalysis, the United Kingdom now leads Central, Northern, and Western Europe in terms of raw transaction volume in the cryptocurrency market.
Furthermore, in February 2023, the crypto tax platform Recap identified London as the world’s most crypto-ready city for businesses.
London claimed this top position, surpassing major global financial hubs like Dubai and New York, further cementing the U.K.’s status as a burgeoning cryptocurrency economy.
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