UK tightens controls on cryptocurrency assets
UK tightens controls on cryptocurrency assets
The UK is preparing to introduce an "Economic Crime and Corporate Transparency Bill" that would allow local courts and law enforcement agencies to freeze crypto assets used for money laundering, drug trafficking, cybercrime, and terrorism.
Currently, the UK requires an arrest and conviction warrant to access crypto assets used for criminal purposes. This flaw in UK law allows criminals to quickly transfer targeted assets before authorities have obtained a court order to freeze them.
The new law allows courts to directly order asset forfeiture without obtaining the necessary authorizations.
The bill's new civil forfeiture powers also allow for the seizure of cryptocurrency linked to a crime, regardless of whether a person has been convicted of a criminal offense in an ongoing investigation or proceeding.
"The Economic Crimes and Corporate Transparency Bill was drafted and introduced in September 2022," according to Coincu. It is now awaiting approval in the House of Lords, and if approved, the bill will become law following royal assent.
The UK's decision to tighten regulation of cryptocurrencies demonstrates its commitment to fighting illegal financial activity.
According to The New Scientist, more than £300 million in cryptocurrency-related illegal activity was seized in the UK in 2022 alone.
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