The Economic Crime and Corporate Transparency Bill, proposed in September 2022, has made progress in the House of Lords, bringing the United Kingdom closer to expanding its legal framework for combating illicit activities involving cryptocurrencies. The bill aims to empower authorities by granting them enhanced capabilities to target crypto assets used for criminal purposes.
During a recent meeting in the House of Lords on July 4, members conducted a third reading of the bill without proposing any substantial changes related to cryptocurrency enforcement. Described as minor or tidying up amendments, these adjustments aim to streamline law enforcement’s authority in cracking down on financial crimes associated with digital currencies.
A revised version of the bill from June 27 introduced provisions that would allow authorities greater flexibility in confiscating and civilly recovering crypto assets. Furthermore, the legislation seeks to clarify the government’s jurisdiction over digital assets intended for terrorism-related purposes or other illicit activities. Before the bill can become law, UK lawmakers will thoroughly consider all proposed amendments and it will require royal assent.
This development aligns with the UK government’s commitment to robustly regulate cryptocurrencies to counter their misuse. As part of its economic crime plan for the years 2023 to 2026, the government aims to implement the Economic Crime and Corporate Transparency Bill by the fourth quarter of 2023. Additionally, they plan to collaborate with various agencies to adhere to the standards set forth by the Financial Action Task Force’s Travel Rule.
In a separate move, the House of Lords also conducted a third reading of the Financial Services and Markets Bill on June 19. This legislation, which became law on June 29, is designed to support the adoption of crypto assets within the country.
With these advancements in regulation, the UK government seeks to create a more secure environment for the cryptocurrency industry, promote financial transparency, and combat illicit activities. By strengthening authorities’ control over crypto assets, they aim to address concerns related to financial crimes associated with digital currencies.