The UK has passed the Economic Crime and Corporate Transparency Bill, which allows authorities to seize and freeze cryptocurrencies like Bitcoin if they are used for illicit purposes. This legislation aims to expand the government's ability to combat cryptocurrency-related crimes such as cybercrime, scams, and drug trafficking. The bill permits the recovery of crypto assets used in crimes even without a conviction, targeting individuals who may avoid conviction by staying remote. The UK government is determined to robustly regulate crypto to prevent the illicit use of digital assets as part of its economic crime plan for 2023–2026.
The United Kingdom has passed the Economic Crime and Corporate Transparency Bill, which grants authorities the power to seize and freeze cryptocurrencies, including Bitcoin, if they are used for illicit purposes. The legislation is set to receive royal assent on October 26, marking the completion of all parliamentary stages in both houses of parliament.
Introduced in September 2022, this legislation aims to enhance the government's ability to crack down on cryptocurrency-related crimes such as cybercrime, scams, and drug trafficking. Some key provisions of the Economic Crime and Corporate Transparency Bill include:
Recovery of Crypto Assets without Conviction: The bill enables the recovery of crypto assets used in crimes even when there is no conviction, targeting individuals who may evade conviction by operating remotely.
Fighting Terrorism Financing: The legislation is designed to combat the use of digital assets "for the purposes of terrorism" and related reasons.
This development aligns with the UK government's commitment to "robustly" regulate cryptocurrencies to prevent their illicit use as part of the economic crime plan for 2023–2026, UK lawmakers had previously announced their goal to pass the Economic Crime and Corporate Transparency Bill by the fourth quarter of 2023, in addition to adopting the Financial Action Task Force's Travel Rule.
The UK has emerged as a significant cryptocurrency economy as the government has intensified efforts to combat crypto-related crimes. According to a report by blockchain analytics firm Chainalysis in October 2023, the UK boasts the highest raw transaction volume in Central, Northern, and Western Europe, establishing itself as a leading crypto country in the region.
Moreover, in February 2023, the crypto tax platform Recap ranked London as the world's most crypto-ready city for businesses, surpassing Dubai and New York.
(HELEN PARTZ, COINTELEGRAPH, 2023)