UK’s new bill seems to target fraudulent activities in crypto

Updated: 24 September 2022

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The United Kingdom’s current regime has presented legislation to combat fraudulent money transactions, specifically by broadening the authorities’ capability to target virtual currencies used for illegal purposes.

The United Kingdom government announced on Thursday that legislators had presented the Economic Crime and Corporate Transparency Bill in Parliament as an aspect of attempts to push dirty money away from the country. The proposal included provisions for reducing red tape surrounding confidentiality responsibility and giving security forces the power to compel companies to turn over information about money embezzling or terrorist funding, including cryptocurrency.

The new legislation will simplify and speed up the process for police departments like the National Crime Agency to confiscate, stop, and retrieve cryptoassets, which are increasingly used by organized crime to hide money profits from forgery, drugs, and cyberattacks. According to the administration, reinforcing authority in this act will modernize the legislation, allowing organizations to keep up with technological changes and inhibit assets from financing further criminality.

According to Graeme Biggar, general director of the United Kingdom’s National Crime Agency, international and domestic lawbreakers have embezzled the funds of their corruption and crime for decades. Therefore, they are progressively using virtual currencies. Such much welcomed and long-awaited policy changes will assist them in placing restrictions on both.

A necessity

The legislation, first revealed by King Charles, who was Prince then, during the Queen’s announcement to the houses of the United Kingdom Parliament last May, was intended to combat illicit finances, decrease financial offenses, and help companies grow. The nation’s Economic and Finance Ministry is also cooperating to incorporate cryptocurrency as a payment method into its legal regime.

Per the UK ruling party, broadening the state’s power to seize, stop, and retrieve cryptocurrency is based on legislation that makes it easier to impose harsher punishments on individuals associated with the Russian President after the infiltration of Ukraine. The legislation was introduced following Queen Elizabeth II’s death and the replacement of Party Leader Boris Johnson by Liz Truss.

As stated by the administration, the Metropolitan Police Department reported a significant increase in virtual currency seizure activity last year as the area and number of individuals grew. According to the BBC, in July last year, police confiscated 114M and 180M pounds, or approximately $331M, in digital money linked to global financial fraud.

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