UK Government advances a Bill empowering authorities to seize crypto

By Shashank Bhardwaj| Jul 6, 2023

UK government takes action to combat economic crime by advancing a bill that empowers authorities to seize cryptos and crack down on illicit activities

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The UK Parliament's House of Lords has taken a significant step forward in the legislation process involving crypto by conducting a third reading of the Economic Crime and Corporate Transparency Bill. Initially introduced in September 2022, the bill aims to bolster authorities' capabilities in targeting crypto employed for illicit activities.

The latest reading did not witness any proposed changes related to crypto enforcement, with lawmakers considering the amendments minor adjustments to enhance the bill's effectiveness.

The most recent version of the bill, dated June 27, features provisions that amend existing frameworks to grant authorities greater flexibility in confiscating and recovering crypto assets. Additionally, the legislation clarifies the government's jurisdiction over digital assets intended for purposes related to terrorism. UK lawmakers will carefully consider all proposed amendments before the bill can be enacted through royal assent.

The UK government has steadfastly been committed to regulating crypto to combat the illicit use of digital assets. In March, it announced its intention to implement rigorous regulations as part of the economic crime plan from 2023 to 2026. Alongside the Economic Crime and Corporate Transparency Bill, the government plans to coordinate with various agencies to implement the Financial Action Task Force's Travel Rule.

The UK's efforts to strengthen crypto regulations and combat financial crimes associated with digital assets align with global trends. Governments worldwide increasingly recognise the need for comprehensive regulatory frameworks to address illicit activities enabled by cryptos.

However, while the government seeks to regulate crypto more effectively, it also acknowledges the importance of fostering innovation and supporting the adoption of cryptos. Striking a balance between regulation and innovation will be crucial in ensuring the growth and sustainability of the crypto ecosystem in the UK.

As the Economic Crime and Corporate Transparency Bill progresses through the legislative process, stakeholders in the crypto industry will closely monitor its developments. The bill's potential impact on businesses and individuals involved in cryptocurrency transactions and its alignment with international standards will be of significant interest.

The UK government's proactive stance on crypto regulation reflects its commitment to address financial crimes and establish a robust framework to safeguard the financial system's integrity. The advancement of the Economic Crime and Corporate Transparency Bill represents a significant milestone in the country's efforts to strengthen its crypto seizure powers and contribute to the global fight against illicit activities in the digital asset space.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash