The U.K. government introduced a bill permitting the seizure, freezing, and recovery of crypto assets on the 22nd of September, 2022.
The bill will make it easier for law enforcement agencies to bear down on “kleptocrats, organized criminals and terrorists abusing the U.K.’s open economy,” according to a blog post published by GOV.UK.
Under the law, agencies like the National Crime Agency will be granted the power to seize, freeze and recover crypto assets. This comes to light with the awareness that digital currency has increasingly become a tool for profit laundering from fraud, drugs, and cybercrime.
King Charles announced the Economic Crime and Corporate Transparency bill in May to both houses of the U.K. Parliament.
Additionally, its reform agenda covered more than the nefarious activities perpetrated by criminal groups within the crypto industry. Under the updated bill, all companies registered in the U.K. would be required to verify their identity, deterring the use of these entities as a front for a crime.
“We want the U.K. to be the best place in the world to invest and start a business, but we must not allow this openness to be exploited by fraudsters misusing the identities of innocent people or corrupt elites attempting to disguise their dodgy dealings,” Jacob Rees-Mogg, Secretary of State for Business stated.
Earlier this month, the U.K. Treasury ordered crypto exchanges and wallet providers to report suspected sanctions to the respective authorities. Under the Sanctions and Anti-Money Laundering Act 2018, the official guidance was updated to include “crypto assets,” among others.
Crypto companies must freeze sanctioned assets and report to the Office of Financial Sanctions Implementation (OFSI), with failure to comply equating to a criminal offense.
Graeme Biggar, director general of the U.K.’s National Crime Agency, said:
“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.”
Metropolitan Police Seize a “Record Breaking” Total of £294 Crypto Assets
While the bill was recently passed, authorities have not been slacking in monitoring the activities of illicit cryptocurrency operations.
In July last year, the Metropolitan Police recorded a significant rise in crypto seizures, reportedly seizing crypto assets worth almost £180 million- the highest amount ever sized by the U.K. police and possibly, globally.
In June, the Met confiscated £114 million worth of cryptocurrency. Police with relation to money laundering. This comes to the total £295 million estimate of cryptocurrency seized by the police service in 2021.
The Metropolitan Police Deputy commissioner stated the success of crypto-criminal operations was due to new technologies. Graham McNulty added that specialist units and trained officers were being deployed to these illicit territories to crack them down and remain a step ahead.
Other Economy Sanctions on Cryptocurrency
The U.K. is one on the long line of economies to introduce sanctions, regulating all operations involving cryptocurrency.
As of September 2022, Thailand has issued a law banning crypto lending and staking services. The order was set into motion by the Thailand Securities and Exchange Commission (SEC) via a press release.
The decision to prohibit crypto companies from offering these services was made after careful consideration to protect traders and the general public from business risks.
