The UK Parliament has passed a bill that allows law enforcement authorities to confiscate cryptocurrencies associated with illicit activities.
This includes investment scams, hacking, terrorist financing, money laundering and drug trafficking.
By a official announcement on its website, the new bill, dubbed the “Business Transparency and Economic Crime Act,” will expand the authority of local law enforcement to crack down on and recover digital assets linked to cybercrimes.
Today the Economic Crime Act became law.
This is landmark legislation which should significantly strengthen the UK’s defenses against fraud and money laundering, cracking down on those who abuse our economy for their own private gain.
— Transparency International UK (@TransparencyUK) October 26, 2023
The Economic Crime and Corporate Transparency Act was passed on 25 October and received formal approval (Royal Assent) on 26 October.
One of the provisions of the bill is the confiscation of digital assets linked to illicit activities without conviction. In addition, the law aims to combat the use of cryptocurrencies to finance terrorism.
This is a problem facing the United States with the ongoing post-Israel war with Hamas, a military sect in Palestine.
In the past, law enforcement in the UK had to wait for a successful prosecution before seizing digital assets.
However, the new legislature offers a much faster solution that allows local enforcement units to process crypto recovery actions.
The bill was originally introduced in September 2022, but has now been revised to include terrorism-related offenses and help authorities track transactions.
Despite the UK’s efforts to support and promote the cryptocurrency industry, it has integrated strict laws and stepped up efforts to mitigate crypto-crimes.
The UK’s economic crime scheme suffers from limitations
As Parliament moves forward with the laws, the Financial Conduct Authority (FCA) is finding it difficult to regulate cryptocurrency companies that breach its new regulations.
Global exchange Binance recently had to do just that close the register of new clients in the UK due to the suspension of RebuildingSociety by the FCA.
According to statement by the FCA on October 25, crypto companies have breached marketing rules up to 221 times.
Find out the 3 common problems we identified with #cryptoactive financial promotions.
Consumers should check the FCA’s warning list before investing #crypto
— Financial Conduct Authority (@TheFCA) October 25, 2023
The UK regulator’s latest announcement comes after it reported issuance of 146 alerts on October 9 for breaching its promotion rules 24 hours after its promulgation.
Instead of providing standard information about the risks associated with the assets offered, trading platforms continue to make claims about the safety, security and ease of crypto operations.
Before this latest breach of rules, the UK’s financial watchdog integrated a strict financial promotion framework on October 8, requiring stock exchanges to stop promoting bogus trading investment schemes to attract investors. residents
The new rules state that cryptocurrency-related advertisements can only be promoted or approved by companies authorized by the FCA and apply to all companies, even those without a UK presence.
Promotions must have detailed information about assets and business risk and not use incentives such as referral bonuses and memes to entice trades to invest.
Failure to provide accurate marketing information to traders included penalties such as fines and possible prison terms.
In addition, criminals face being added to the regulator notice listwhich already contains Huobi, KuCoin and 143 other exchanges.
While the FCA lacks the wits to keep crypto platforms under control, partnerships with app stores, social media platforms, domain name registries and search engines are in motion to stem the flow of operations on prohibited platforms.