In the digital era, where cryptocurrencies are gaining popularity, governments around the world are trying to adjust their laws to counter potential threats. The UK has taken steps to tighten cryptocurrency regulations, aiming to protect its citizens and the economy from illegal activities.
There are many benefits to using cryptocurrencies – from global transactions without intermediaries to significant savings. However, for the same reasons, cryptocurrencies have become an attractive tool for criminals. In response to these challenges, the British Parliament decided to make changes to the law.
The House of Lords, one of the two houses of the British Parliament, pushed through a bill that allows the confiscation of stolen cryptocurrency funds. The bill now moves to the House of Commons, where it will undergo the final stages of approval.
The primary aim of this bill is to combat financial crime related to cryptocurrencies. The bill includes, among other things, clearer rules regarding corporate transparency and the registration of foreign companies. This will allow law enforcement agencies to treat crypto as a key piece of evidence in criminal investigations. It is also expected to help eliminate illegal projects taking advantage of the funding available in the industry.
Furthermore, the law aims to introduce stricter registration requirements and increase transparency requirements for UK limited partnerships. The goal is to prevent money laundering and other crimes.
Once the bill is approved by the House of Commons, it will move for royal assent and be enacted into law. An earlier version of the bill was approved by the House of Lords two months prior and enjoyed broad support. According to this proposal, law enforcement can confiscate and freeze cryptocurrencies associated with criminal activity.
Graeme Biggar, the Director-General of the National Crime Agency, commented on the introduction of the bill, stating that domestic and international criminals have been using UK corporate structures for money laundering from crime and corruption for years, and increasingly using cryptocurrencies. These reforms, though long-awaited, are very welcome, as they will help combat both these forms of crime.
Behind every technology that brings benefits, there are also potential threats. Cryptocurrencies, although offering many opportunities, are no exception. With these new regulations, the UK aims to create a safer environment for its citizens and to protect the integrity of its financial system.
Photo by Kristina Gadeikyte on Unsplash
