hit counter

Are UK regulators joining the illicit crypto market players?

Aiming to strengthen its money laundering policy, the UK government introduced the Financial Crime and Business Transparency Act on September 22, which would give the power to confiscate, freeze and recover crypto assets if used for criminal activities.

The bill, which has been tabled in the UK Parliament, is primarily part of the government’s intention to drive illicit money out of the country. The bill aimed to reduce the bureaucracy surrounding the domain. If passed, it would force companies to disclose information that could fall under money laundering or terrorist financing.

The 250-page bill was first envisaged in May and presented for first reading in the House of Commons on Thursday and will be discussed and debated further in October.

Granting of powers to authorities

Prior to the bill, there were no provisions that would freeze or recover crypto assets. It would give money laundering authorities or regulators the ability to act faster and more efficiently. The Proceeds of Crime Act will allow legislation to empower authorities, keep up with new technology and prevent assets from funding further crime.

Ask Economy Secretary Jacob Rees-Mogg and he will tell you that the reforms were indeed long-awaited and would help authorities crack down on the illegal actors. Also, it is in line with their intention to make the UK the best place in the world to invest and start a business and to protect them from any form of exploitation by scammers.

Conclusion

If the bill is turned into law, it would be a huge win for regulators in the UK. With regulators already on the verge of stablecoin regulation, this would give them more power to crack down on those who break the law.

Risk Warning: Trading cryptocurrencies involves a high level of risk, including the risk of losing some or all of your investment, and may not be suitable for all investors. Cryptocurrency prices are extremely volatile and can be affected by external factors such as financial, regulatory or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) are subject to change. Before deciding to trade any financial instrument or cryptocurrency, you should fully understand the risks and costs involved in trading the financial markets, carefully consider your investment objectives, level of experience and risk tolerance, and seek professional advice if necessary. Kalkine Media cannot and does not represent or warrant that the information/data available here is accurate, reliable, current, complete or suitable for your needs. Kalkine Media accepts no liability for any loss or damage arising out of your trading in or reliance on the information shared on this website.

Leave a Comment