The UK Introduces New Crypto to Aid Crypto Seizures
- The UK has stepped up its plans to prevent the use of cryptocurrencies for money laundering and other illegal purposes.
- The new bill will grant local authorities the power to seize crypto assets deemed to be connected to money laundering.
- The Metropolitan Police claimed the seizure of crypto assets has increased since 2021.
The United Kingdom has focused its attention on finding a solution to the growing cases of money laundering and hacking. The UK government announced the Economic Crime and Corporate Transparency Bill in parliament, which extends the jurisdiction of the police to target cryptocurrencies used for illegal activities.
Although the bill was not specifically designed for cryptocurrencies, it does, however, make it easy for authorities to seize, freeze, and recover assets. Officials noted that the bill was designed to drive illegal money out of the United Kingdom and prevent cases of money laundering.
The new bill included measures to reduce red tape regarding confidentiality liability and provide law enforcement the power to order organizations to disclose information that may be related to money laundering or terrorist funding, including crypto.
According to the government,
The new law will make it easier and quicker for law enforcement agencies such as the National Crime Agency to seize, freeze and recover cryptoassets — the digital currency increasingly used by organized criminals to launder profits from fraud, drugs, and cybercrime. Strengthening powers in the Proceeds of Crime Act will modernise the legislation to ensure agencies can keep pace with the rapid technological change and prevent assets from funding further criminality.
Speaking on the importance of the new bill, Graeme Biggar, the Director General of the National Crime Agency, said in a statement,
Domestic and international criminals have for years laundered the proceeds of their crime and corruption by abusing UK company structures, and are increasingly using cryptocurrencies. These reforms—long awaited and much welcomed—will help us crack down on both.
King Charles first announced the bill in May as part of the UK’s efforts to increase financial security. The UK’s Economic and Finance Ministry has been involved in ensuring the safety of emerging assets such as cryptocurrencies. The agency has also moved to adopt stablecoins as a payment option in its regulatory structure.
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