The United Kingdom has successfully passed the Economic Crime and Corporate Transparency Bill. This is in a move to strengthen the fight against cybercrime, scams, and drug trafficking. The legislation, introduced in September 2022 is poised to receive royal assent on October 26, 2023. This further marks a crucial milestone in the battle against illicit use of cryptocurrencies.
Expanded Powers to Combat Crypto-Related Crimes
The comprehensive bill grants authorities enhanced capabilities to crack down on the misuse of cryptocurrency. The legislation aims to broaden the scope of actions against perpetrators. This is with a focus on crimes such as cybercrime, scams, and drug trafficking.
A noteworthy provision within the Bill empowers authorities to recover crypto assets used in crimes, even without a conviction. This becomes particularly crucial as some individuals manage to evade conviction by operating remotely. The legislation also targets the use of digital assets for purposes related to terrorism.
Government’s Robust Regulation Strategy
This legislative development aligns seamlessly with the U.K. government’s commitment to robustly regulate the cryptocurrency space. Part of the broader economic crime plan spanning from 2023 to 2026, the government has actively pursued measures to curb the illicit use of digital assets.
In March, U.K. lawmakers outlined their goal to pass the Economic Crime and Corporate Transparency Bill by the fourth quarter of 2023. Concurrently, it is adopting the Financial Action Task Force’s Travel Rule. This aligns the country with international standards in combating financial crimes.
U.K.’s Crypto Economy and Global Recognition
Also, as the U.K. intensifies its crackdown on crypto-related crimes, it has concurrently emerged as a major player in the global cryptocurrency economy. A recent report by blockchain analytics firm Chainalysis further revealed that the U.K. leads in raw transaction volume in Central, Northern, and Western Europe.
Notably, London has been recognized as the world’s most crypto-ready city for business. This is further establishing its global presence in the crypto sphere. A February 2023 report by the crypto tax platform Recap placed London ahead of prominent cities such as Dubai and New York.