The UK government has introduced the Seize, Freeze, and Recover Crypto Assets Bill into Parliament.
This new law gives law enforcement agencies more powers to seize, freeze, and recover crypto assets.
The bill specifically targets those involved in criminal activities such as money laundering, drugs and cybercrime, along with crypto acting as a key contributor.
The bill is known as the Economic Crime and Corporate Transparency Act.
This bill will help concerned authorities target cryptocurrencies that have been used for illegal purposes.
The White Collar Crime and Corporate Transparency Bill tabled in Parliament is part of an effort to squeeze “dirty money” out of the economy.
This bill includes a provision to cut “red tape around confidentiality obligations” and allows law enforcement agencies to “compel companies to release information that could be related to money laundering or terrorist financing,” and that includes crypto.
Increased use of crypto to facilitate illegal activities
The bill will also require those registering a company in the UK to verify their identity, among other changes.
Other changes include giving businesses more opportunities to better monitor business formation. This also includes the ability to compare data with public and private partners.
This includes reporting suspicious activity to security and law enforcement agencies.
British government mentioned
The new law will make it easier and faster for law enforcement agencies like the National Crime Agency to seize, freeze and recover crypto assets – the digital currency increasingly used by organized criminals to launder profits from fraud, drugs and cybercrime. Strengthening the Proceeds of Crime Act will modernize legislation to ensure authorities can keep pace with rapid technological change and prevent assets from funding further crime.
Graeme Biggar, quoted by the Director-General of Britain’s National Crime Agency,
“Domestic and international criminals have laundered the proceeds of their crimes and corruption for years by abusing British corporate structures and are increasingly using cryptocurrencies. These long-awaited and much-welcomed reforms will help us tackle both.
The bill is scheduled for a second reading
The formulation of the Economic Crime Transparency and Enforcement Act has helped regulators impose sanctions on Russia and also freeze assets in the country. This bill is set for a second hearing on October 13, which is currently scheduled.
According to the government, the Metropolitan Police claimed that 2021 saw an increase in cryptocurrency seizures.
The number of users within the crypto space has grown.
Police reportedly seized 114 million and £180 million in July 2021 alone, representing around $331 million in crypto that has been linked to international money laundering.