Lawmakers in the United Kingdom have passed legislation that will allow authorities to seize and freeze cryptocurrencies such as Bitcoin if they are used for illicit purposes. The Economic Crime and Corporate Transparency Bill is expected to receive royal assent on October 26, completing all parliamentary stages in both houses of parliament.
Cracking Down on Crypto Crime
The new legislation, introduced in September 2022, aims to expand authorities' ability to combat the use of cryptocurrency in crimes such as cybercrime, scams, and drug trafficking. One of the key provisions of the bill is the ability to recover crypto assets used in crimes even without a conviction, as some individuals may avoid conviction by remaining remote. The legislation also targets the use of digital assets for terrorism-related purposes.
Aligning with Government Plans
This latest development in crypto-related law in the UK aligns with the government's plan to regulate cryptocurrencies more rigorously in order to combat their illicit use. The Economic Crime and Corporate Transparency Bill is part of the government's economic crime plan from 2023 to 2026. The government aims to pass the bill by the fourth quarter of 2023 and has already adopted the Financial Action Task Force's Travel Rule.
Emerging Crypto Economy
The UK's crackdown on crypto-related crimes comes as the country has become a major player in the cryptocurrency economy. According to a report by blockchain analytics firm Chainalysis, the UK has the highest raw transaction volume of any country in Central, Northern, and Western Europe. In addition, the city of London has been recognized as the world's most crypto-ready city for business, surpassing Dubai and New York, according to crypto tax platform Recap.
