On Thursday, the UK presented a rather unique law in Parliament. Indeed, this new law specifically targets cryptocurrencies, as it will give authorities the power to seize, freeze and recover cryptocurrencies more easily.
The bill comes at a time when UK authorities are stepping up efforts to crack down on money laundering activities. According to government officials, digital currencies such as cryptocurrencies are increasingly being used by organized criminal gangs to launder their profits from fraud, drugs and cybercrime.
What is this new law about?
Introduced in the British Parliament as "The Economic Crime and Corporate Transparency Bill", the law makes a number of changes in several areas of British finance. For example, the implementation of this new regulation will significantly change the way a company must proceed to establish itself in the UK.
In fact, anyone wishing to register a company in the UK will need to verify their identity, as well as other changes. As a result, Companies House, the UK's business regulator, will have more powers to monitor and analyze company formation.
Among the new powers granted, Companies House will have the freedom to share individuals' data with public and private partners, as well as the ability to report any illegal activity to the relevant authorities.
As for cryptocurrencies, the bill is expected to allow police forces to seize, freeze and recover cryptocurrency assets.
All these new rules are contained in a 250-page document and are the subject of close collaboration between the Ministry of the Interior, the Ministry of Enterprise, Energy and Industrial Strategy, the Fraud Office and the Department of the Treasury.
This new bill complements a previous law passed by the British Parliament. This is the Economic Crime (Transparency and Enforcement) Act, by which the United Kingdom imposed sanctions on Russia by freezing its assets in the country.
The growing control of the British authorities on the cryptocurrency market
Over the years, cryptocurrency regulation has steadily increased in the UK. An accumulation of regulations that has helped the country's authorities to seize more cryptocurrencies on their territory.
Many have noted that the UK is increasingly focusing on illicit activities involving cryptocurrencies. The new rules introduced by the bill are intended to allow companies operating in the country to comply.
In addition, the various branches of government are working to put even more pressure on all companies belonging to the cryptocurrency sector.
For example, the Financial Conduct Authority (FCA) recently issued a warning to its consumers. In its report, the FCA states that the FTX exchange platform has not yet received the registration that legalizes it with the FCA and therefore urges its users to be cautious.
Even before the introduction of this law, the British authorities were not helpless in the world of cryptocurrencies. In July 2021 alone, the London Metropolitan Police seized a record 180 million pounds ($ 200 million) in cryptocurrencies linked to an international money laundering case. An event that came in the wake of a £ 114 million cryptocurrency seizure that took place the previous month, according to the BBC.
