The United Kingdom has proposed a new bill to remove dirty money from the country's economy. It attempts to crack down on fraudulent transactions and money laundering, which has been a country's focus for some time.

The law aims to seize and recover "digital currency, which is increasingly being used by criminal syndicates to launder revenues from fraud, drugs, and cybercrime."

The Economic Crime and Corporate Transparency Bill makes numerous changes to how businesses must be established in the United Kingdom. Those who establish a business in the United Kingdom will, among other things, be required to verify their identities.

One of these changes is that the Companies House will be given more authority to oversee company formation. This includes cross-checking data with public and private entities and reporting suspicious activity to security and law enforcement.

In terms of cryptocurrency, the new law allows authorities to seize, freeze, and restore digital assets. As regulation in the United Kingdom has become more stringent, more crypto assets have been seized, increasing in intensity.

Exert control over the cryptocurrency market

The U.K. has been paying greater attention to illicit activity. It has also been concerned with ensuring that companies follow the letter of the law and has taken numerous actions against businesses in the space to that end.

The Financial Conduct Authority (FCA) recently warned consumers that the exchange FTX had not been authorized with it. As a result, it cautioned users to be careful. Previously, the FCA issued similar warnings.

In other news, several businesses have been closed in recent months. Companies that use cryptocurrency must also report sanction violations and freeze accounts.

European Union focused on stricter regulation.

The European Union is also working hard to develop a broad framework for the market. The EU has the MiCA bill, which is getting closer to becoming law. It focuses on consumer security and stablecoin regulation but also addresses NFTs to some extent.

The EU has been working on the crypto regulation bill for a much longer time, so it's not surprising that it covers more ground. In addition, the region has been much more centered on consumer rights in general rather than just in the industry.

Do you think this new initiative will help prevent profits from criminal acts, especially in digital assets? Let us know your thoughts by sharin this article on social media.

Posted 
Sep 23, 2022
 in 
Crypto News
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