UK Introduces New Law To Combat Crypto Fraud
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The United Kingdom (UK) government has introduced a a new bill that would allow law enforcement agencies to freeze, recover and seize crypto-assets when it is used for criminal activities such as money laundering, drugs and cybercrime.
According to the official release “Economic crime and the Business Transparency Act”, empowers authorities to target criminal and illegal organizations that use cryptocurrencies to finance illegal activities. The purpose of the bill is to prevent criminals from diverting billions of dollars from criminal enterprises to legitimate holdings.
The UK Government will strengthen the Financial Regulation
Graeme BiggarDirector-General of the National Crime Agency, welcomed the bill, arguing that it would to ensure strict enforcement checks to ensure that cryptocurrencies cannot be used for money laundering or terrorist financing. He expressed that as crypto adoption increases, so does the chorus of voices calling for more oversight and greater punishments for wrongdoers. Biggar continued,
“Domestic and international criminals have been laundering the proceeds of their crimes and corruption for years, abusing UK business structures and increasingly using cryptocurrencies. These reforms – long overdue and very welcome – will help us curb both.
The bill includes more than just cryptocurrencies. It supports strengthening government efforts to combat money laundering, terrorist financing and financial fraud. In addition, it also seeks to verify the organization’s identity when registering in the UK.
On the other hand, the bill ensures that small business owners, consumers and the public are better protected against misuse of their identities and addresses. The UK government website stated,
“The Financial Crime and Business Transparency Bill will strengthen Britain’s reputation as a place where legitimate businesses can thrive and drive dirty money out of the UK.”
Britain is trying to add crypto
Over the last couple of years, the UK has stepped up its regulatory policy regarding cryptocurrencies. Recently, the UK’s Office for the Enforcement of Economic Sanctions (OFSI) added “crypto assets” to the asset list should be frozen if they belong to someone subject to sanctions. According to the rules, UK cryptocurrency exchanges must notify authorities of any potential breach of sanctions.
Earlier this week, the United Kingdom’s Financial Conduct Authority published a warning on its website about FTX, a cryptocurrency exchange based in the Bahamas, alleging that “the provision of financial services or products in the United Kingdom” without permission. In addition, Sam Bankman Fried was listed by the UK financial watchdog “unauthorized attempt”.