UK enacts law to seize, freeze and recover cryptocurrencies

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2022-09-26 02:46:48

In an effort to tighten regulation, the UK recently introduced a bill to make it easier for law enforcement agencies to manage, freeze and recover crypto assets when they are used for criminal activities. such as money laundering, drugs and cybercrime.

The UK “tightens” the problem of crypto crime

Bill on Economic Crime and Corporate Transparency 250 pages long, first introduced in May 2022. The sketch is the result of work from the Department of the Interior, the Department of Business, Energy & Industrial Strategy, the Office of Serious Fraud and the Treasury.

The bill’s text had its first reading in the House of Representatives on Thursday (September 22), and a second reading is scheduled for October 13.

The Director General of the National Crime Agency, Graeme Biggar, stated:

“National and international criminals have over the years abused corporate structures in the UK as well as increasingly using cryptocurrencies to launder the proceeds of their crimes and corruption. These reforms are long-awaited and will help us crack down on both.”

In fact, during the period without the bill, the British government still applied strong measures to deal with crypto-related crimes. London police seized up to 180 million pounds (US$200 million) worth of cryptocurrency in connection with international money laundering in July 2021 following a move worth 114 million dollars. British pound June 2021, BBC reported.

The bill builds on the previous Economic Crimes (Transparency and Enforcement) Act that helped regulators impose sanctions on Russia and freeze related assets in the country.

Regulators are concerned that cryptocurrencies have been used by Russia to evade sanctions imposed after the country launched its invasion of Ukraine.

In addition, the UK Treasury updated its guidance to help crypto exchanges and wallet providers report suspicious breaches earlier this September. Other countries before the UK that have also made similar moves are the United States and the European Union, when clarifying sanctions rules to the field of cryptocurrencies.

On July 5, the UK Tax and Customs Service (HMRC) published a report seeking input and evidence on the taxation of loans and staking of cryptocurrencies in the space. DeFi.

Recently, on September 16, the UK Financial Conduct Authority (FCA) issued a series of warnings about FTX, recommending that users should not trade through this exchange because of illegal activities in the host country. FCA says UK customers dealing with FTX will not have access to UK user protections such as Financial inspection or Financial Services compensation in the event of a mishap. .

The Financial Conduct Authority also warned that illegal firms that do not stop offering transactions risk being subject to civil to criminal penalties by the FCA.

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