Legislators in the UK have passed the Economic Crime and Corporate Transparency Bill legislation, allowing authorities to seize and hold Bitcoin and other cryptocurrencies used for illicit activities.
According to official data on the U.K.’s Parliamentary Acts website, the Economic Crime and Corporate Transparency Bill is expected to receive royal assent on October 26. This would indicate that the bill would have completed all parliamentary stages in both Houses.
The passed legislation, introduced in September 2022, seeks to expand law enforcement’s ability to combat the use of cryptocurrencies in crimes such as cybercrime, fraud, and drug trafficking.
A provision of the Economic Crime and Corporate Transparency Bill allows the recovery of crypto assets used in crimes without a conviction, as some individuals can evade conviction by remaining remote. The legislation also seeks to combat the use of digital assets “for terrorism” or similar purposes.
The most recent crypto-related legal development in the United Kingdom is consistent with the government’s intentions to “robustly” regulate crypto to combat the illegal use of digital assets as part of its economic crime plan from 2023 to 2026.
In addition to passing the Economic Crime and Corporate Transparency Bill by the fourth quarter of 2023, British legislators stated in March that they intend to adopt the Financial Action Task Force’s Travel Rule.
As a result of the government’s crackdown on crypto-related crimes, the United Kingdom has emerged as a significant cryptocurrency economy. According to a report published by the blockchain analytics firm Chainalysis in October 2023, the United Kingdom has the highest volume of crypto transactions in Central, Northern, and Western Europe.
The crypto tax platform Recap reported in February 2023 that London was the world’s most crypto-ready city for business, ahead of Dubai and New York.
