UK released a crypto bill to tackle illegal finance
On Thursday, the UK government released an Economic crime and Corporate Transparency bill to tackle illicit finance funnelled through the crypto ecosystem. The UK crypto bill aims to increase law enforcement's ability to target cryptocurrencies used for unlawful activities to target money laundering and fraud.
As of now, the bill is scheduled to have its second hearing on Oct 13th.
UK crypto bill purpose
The UK crypto bill released in Parliament on Thursday strives to keep "dirty money" out of the nation. The proposed legislation included measures to reduce "red tape around confidentiality liability" and give law enforcement the power "to compel businesses to hand over information related to money laundering or terrorist financing," including crypto.
The bill specifically targets those involved in illegal activities like money laundering, drug trafficking, and cybercrime, in addition to cryptocurrency, which acts as a critical enabler. This bill will help the relevant authorities in their quest for cryptocurrencies that have been used fraudulently.
The bill mandates the new upcoming companies in the UK to verify their identities. This includes cross-checking data with public and private partners and listing suspicious activity to security and law enforcement agencies.
The bill is meant to build on the previous Economic Crime (Transparency and Enforcement) Act, which helped regulators impose sanctions on Russia and freeze relevant assets in the country. Regulators are concerned that some Russians use cryptocurrency to circumvent sanctions imposed by Ukraine's invasion.
UK government active with crypto activities
According to reports, in July 2021, the Met police reportedly seized 180 million pounds in a money laundering investigation. This incident took place just after a month when Met police seized 114 million pounds in cryptocurrency linked to international money laundering.
Cryptocurrency has been a vital ground for criminals to execute their illicit activities. But, with new reforms and bills, the UK government is preparing to tackle dirty money and target unlawful crypto activities in the nation.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.