The United Kingdom has taken a significant step in regulating the use of cryptocurrencies. The Economic Crime and Corporate Transparency Bill, which was introduced in September 2022, has been passed by lawmakers. This legislation will empower authorities to seize and freeze digital assets like Bitcoin if they are linked to illegal activities.
📰Bill’s Progress
According to the official U.K. parliamentary acts website, the bill is set to receive royal assent on Oct. 26, 2023. This means it will have successfully navigated all parliamentary stages in both the House of Commons and the House of Lords.
📰Aims of the Legislation
The primary objective of this legislation is to bolster the authorities’ capabilities in tackling crimes involving cryptocurrencies. This includes cybercrimes, scams, drug trafficking, and more. A notable provision in the bill allows for the recovery of crypto assets used in crimes even if there’s no conviction. This is particularly relevant for cases where individuals evade conviction by staying remote. Additionally, the bill seeks to address the use of digital assets for terrorism-related activities.
📰Aligning with Government’s Plans
This recent legal development is in line with the U.K. government’s broader strategy to regulate cryptocurrencies robustly. As part of its economic crime plan spanning from 2023 to 2026, the government aims to curb the illicit use of digital assets. Earlier in March, U.K. lawmakers had expressed their intention to pass the Economic Crime and Corporate Transparency Bill by the end of 2023. They also plan to adopt the Financial Action Task Force’s Travel Rule.
📰UK’s Growing Crypto Economy
Despite the government’s stringent measures against crypto-related crimes, the U.K. has solidified its position as a major player in the cryptocurrency economy. A report from blockchain analytics firm Chainalysis in October 2023 highlighted the U.K. as the leading crypto country in terms of transaction volume in Central, Northern, and Western Europe. Furthermore, a study by the crypto tax platform Recap in February 2023 ranked London as the top crypto-ready city for business globally, surpassing both Dubai and New York.
