The UK authorities have seized more crypto assets amid increased regulation and shut down cryptocurrency companies, which must report sanction violations and block accounts. The new law covers much more as the EU has worked on the cryptocurrency regulation longer to focus more on consumer protection.
The UK government recently introduced a new bill to prevent money laundering and fraud while covering cryptocurrency-related aspects. The new draft law will focus on removing dirty money from the economy to combat fraud activity and money laundering.
The Economic Crime and Corporate Transparency Bill aims to seize and recover cryptocurrencies used to launder the proceeds of fraud, drugs, and cybercrime. The draft law changes how to set up a company in the UK. For example, those registering a business will have to verify their identity.
Another change is that Companies House will have more powers to control the creation of companies. It will cross-check data with public and private partners while reporting suspicious activity to competent agencies.
The bill will allow law enforcement to seize, freeze and recover crypto assets in case of criminal activities. Over the years, the UK authorities have confiscated more crypto assets amid increased regulation in the territory.
The UK Authorities Plan to Control the Crypto Market
The UK government has paid further attention to cryptocurrency-related illicit activities. It has also sought to ensure that companies comply with the law strictly. Therefore, it has taken many measures against companies in the crypto space.
The Financial Conduct Authority (FCA) recently warned consumers that the cryptocurrency exchange FTX had not registered with it. In that sense, the regulatory agency told users to be careful, pointing out has issued similar notices before.
Over the last few months, the authorities have shut down cryptocurrency companies, which must report sanction violations and block accounts.
The European Union Focuses on Tightening Regulations on Cryptocurrencies
The European Union (EU) has also worked hard to create a comprehensive framework to regulate the crypto market. Its MiCA law, closer to its adoption, emphasizes consumer protection and stablecoin regulation, besides covering NFTs to some extent.
Since the EU has worked on the cryptocurrency regulation bill longer, it covers much more. The region has also focused more on consumer protection, not just the crypto space.
The increasing relevance of cryptocurrencies in the economic system is evident in the decisions taken by many governments worldwide. For example, the UK authorities view those assets as a factor that contributes to illicit activities such as money laundering and terrorism financing.
However, many serious studies have determined that criminals prefer fiat currencies like the US dollar and the euro. In other words, the percentage of physical money they have used is above that of crypto assets.
Meanwhile, Bitcoin is trading at around USD 19.0967 and has accumulated a 0.6% loss over the last 24 hours. While its daily trading volume is above USD 34.13 billion, its market capitalization is about USD 365.29 billion, according to CoinGecko.
By Alexander Salazar
