The UK government recently approved a bill granting more powers to law enforcement agencies. The legislation, named the Economic Crime and Corporate Transparency Bill, allows government agencies to seize cryptocurrency assets during an investigation. Indeed, the regulations apply even when the individual concerned has not been arrested for a criminal offence.

Increased powers to seize cryptocurrencies

The main new feature introduced by this law is the power given to law enforcement agencies. The latter can confiscate cryptocurrency assets during an investigation, without having to make an arrest. This is particularly useful for investigations into criminal activities such as money laundering, fraud and ransomware attacks. These are often closely linked to transactions involving digital assets. In addition, this measure aims to facilitate cooperation between the various institutions working to combat these crimes.

Civil liability and confidentiality

To encourage companies to cooperate with the authorities, the bill introduces two important provisions:

1. Companies providing information on offences linked to economic crimes will not be prosecuted for breach of confidentiality. This exemption from civil liability will enable companies to proactively report suspicious activity.
2. The text also provides for improved information sharing between the various stakeholders. The coordination and exchange of intelligence concerning illicit activities involving cryptocurrencies will be that much simpler.

Strengthened powers to combat money laundering

The new law also aims to strengthen the powers of the authorities in the fight against money laundering. New measures have been introduced to prevent and detect these illegal operations more effectively.

This law includes :

• Broadening the criteria for qualifying a transaction as constituting money laundering.
• The implementation of enhanced monitoring mechanisms for suspicious transactions.
• Increased penalties for individuals or organizations involved in money laundering.

Consequences for the cryptocurrency economy and industry players

This new UK legislation is likely to have significant consequences for the cryptocurrency sector. Indeed, this law could prompt other countries to adopt similar measures against cryptoasset-related criminal activity. The main market players will need to strengthen their security and control arrangements in order to meet these new legal requirements. Cooperation with the authorities and the implementation of effective reporting protocols will now be more essential than ever.

Conclusion

The UK government’s adoption of the “Economic Crime and Corporate Transparency Bill” helps protect against cryptocurrency-related misdeeds. This news makes it possible to track down and put an end to these illicit practices. It remains to be seen whether other countries will follow suit.