The government of the United Kingdom introduced the “Seize, Freeze, and Recover” crypto asset bill into Parliament.
This new bill provides law enforcement agencies with more power to seize, freeze, and recover crypto assets.
The bill specifically targets those who are engaged in criminal activities such as money laundering, drugs, and cybercrime, along with crypto, which acts as a key enabler.
The bill is called the Economic Crime and Corporate Transparency bill.
This bill will help the concerned authorities target cryptocurrencies, which have been used for illegal purposes.
The Economic Crime and Corporate Transparency Bill introduced in Parliament is part of an effort to push “dirty money” out of the economy.
This bill includes a provision for cutting down the “red tape around confidentiality liability” and also allowing the law enforcement authorities “to compel businesses to hand over information which could be related to money laundering or terrorist financing,” and that also includes crypto.
Increased Use Of Crypto For Facilitating Illicit Activities
The bill also mandates that those who register a company in the U.K. need to verify their identities, among other changes.
Among the other changes is that the companies will have more potential to supervise company creation better. This also includes the ability to cross-check data with public and private partners.
It also includes reporting suspicious activity to security agencies and law enforcement.
The UK government mentioned
The new law will make it easier and quicker for law enforcement agencies such as the National Crime Agency to seize, freeze, and recover crypto assets — the digital currency increasingly used by organised criminals to launder profits from fraud, drugs, and cybercrime. Strengthening powers in the Proceeds of Crime Act will modernise the legislation to ensure agencies can keep pace with rapid technological change and prevent assets from funding further criminality.
Graeme Biggar, quoted by the Director General of the United Kingdom’s National Crime Agency,
“Domestic and international criminals have for years laundered the proceeds of their crime and corruption by abusing U.K. company structures and are increasingly using cryptocurrencies. These reforms—long awaited and much welcomed—will help us crack down on both.
The Bill Is Set For A Second Reading
Formulating the Economic Crime Transparency and Enforcement Act has helped regulators to place sanctions against Russia and also freeze assets in the country. This bill is set for a second hearing on October 13, which is currently scheduled.
According to the government, the Metropolitan Police claimed that there had been an increase in cryptocurrency seizures in 2021.
The number of users within the crypto space has grown.
Reportedly, in the month of July 2021, the police alone seized 114 million and 180 million pounds, which amounted to roughly $331 million worth of crypto, which has been connected to international money laundering.