The Economic Crime and Corporate Transparency Bill, which was initially filed in September 2022, is poised to gain royal assent on October 26, 2023, marking a significant step in the United Kingdom’s legislative efforts to tackle illicit cryptocurrency activities.
The UK’s legislative bodies have recently passed a crucial piece of legislation that empowers authorities to seize and freeze cryptocurrencies, including Bitcoin, if they are found to be associated with unlawful activities. This development, as revealed by official records on the UK’s parliamentary acts website, signifies that the Economic Crime and Corporate Transparency Bill is on track to complete all necessary parliamentary stages, culminating in royal assent on October 26.
The bill, first introduced in September 2022, has a clear objective: to enhance the government’s capacity to combat the misuse of cryptocurrencies in a range of criminal activities, such as cybercrime, scams, and drug trafficking. To achieve this, the legislation encompasses various provisions designed to provide law enforcement with effective tools to address the issue.
One notable aspect of this legislative initiative is the provision that enables the recovery of cryptocurrency assets employed in criminal activities without the necessity of obtaining a conviction. This is particularly pertinent because some individuals involved in illicit cryptocurrency transactions may deliberately remain remote or unidentified. Additionally, the legislation addresses the misuse of digital assets for purposes related to terrorism and other illicit activities.
The recent developments in the United Kingdom’s approach to cryptocurrencies align with the government’s broader efforts to establish robust regulations governing the cryptocurrency space, with a specific focus on curbing the illicit use of digital assets. This commitment is part of the government’s comprehensive economic crime plan spanning from 2023 to 2026.
In March of the same year, UK lawmakers publicly expressed their intent to pass the Economic Crime and Corporate Transparency Bill by the fourth quarter of 2023, demonstrating a sense of urgency in addressing the issues surrounding cryptocurrencies. Furthermore, they aimed to adopt the Financial Action Task Force’s Travel Rule, an international framework designed to enhance transparency in financial transactions.
Interestingly, while the UK government has been intensifying its efforts to combat crypto-related crimes, the country has simultaneously emerged as a prominent player in the global cryptocurrency landscape. An October 2023 report from blockchain analytics firm Chainalysis highlights the UK’s position as the leading crypto country in terms of raw transaction volume in Central, Northern, and Western Europe.
Moreover, a report from the crypto tax platform Recap, published in February 2023, identified London as the world’s most crypto-ready city for business, surpassing notable global financial hubs like Dubai and New York. This recognition underscores the UK’s growing influence and prominence within the cryptocurrency ecosystem.
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