The UK House of Lords approved a bill to confiscate and freeze digital assets linked to criminal activity.
The initiative was first proposed in September 2022. In October, lawmakers introduced amendments, aimed at simplifying the confiscation of cryptocurrencies in cases of financing terrorism. Before it comes into force, the document must pass through the House of Commons.
The Economic Crime and Corporate Transparency Bill gives law enforcement agencies powers to swiftly block criminal transactions, and courts would have the power to order asset seizures.
To detect illicit activity, the UK has appointed digital-asset advisers to advise the police and other law enforcement bodies.
In a statement, published ahead of the first hearings, authorities noted that the new laws would enshrine the UK’s reputation as a favourable place for legitimate business to thrive and eliminate sources of illicit proceeds.
As part of the fight against financial crime, rules require company registration and identity verification.
Earlier Bloomberg reported that crypto firms in the United Kingdom faced tougher requirements. According to journalists, local regulators began denying applications, blocking accounts, and requesting more information about client transactions.
In March 2023, authorities unveiled a three-year ‘Economic Crime Plan’, which envisages steps to curb the use of cryptocurrencies for criminal purposes.
In February, the Treasury unveiled plans to implement oversight of Bitcoin exchanges.
The Financial Conduct Authority set out the timelines for the entry into force of the cryptocurrency advertising regime. The rules will take effect on 8 October 2023.