UK’s House of Lords Approve Bill to Seize Cryptocurrencies Used in Criminal Activities
On Tuesday, July 4, the upper chamber of UK’s parliament - House of Lords - approved the Economic Crime and Corporate Transparency Bill, in order to seize and freeze cryptocurrencies used for criminal activities.
The bill was first introduced last year in September 2022, and has now entered into the final stages of becoming a law. The House of Lords has made some small changes “to make sure the bill is effective”.
The authorities have previously stated that cryptocurrencies can facilitate criminal activity due to their attractive technology. They have also highlighted the challenges in identifying wrongdoers because of the pseudonymous and transnational nature of bitcoin and other altcoins.
According to the National Assessment Center, illicit cryptocurrency transactions in the UK amounted to around $1.5 billion in 2021, which represents only 1% of the total transaction value. However, the organization suspects that the actual figures could be significantly higher.
The Financial Conduct Authority (FCA), the main regulatory body in the UK, has issued a warning to all companies promoting cryptocurrency assets to consumers in the country. They are required to comply with the financial promotion rules by October 8, 2023. This means that the FCA will oversee most digital asset firms that provide services to retail customers in Britain.
“We will take robust action against persons illegally promoting to UK consumers. This may include but is not limited to placing firms on our warning list requesting takedowns of websites, social media accounts, apps, and all other promotions that are in breach, and enforcement action,” the regulator outlined.
After the given deadline, cryptocurrency entities are required to carry out their promotions through an authorized person and ensure that their products meet the anti-money laundering requirements set by the FCA. Failure to register and comply with these regulations can result in penalties, including up to two years of imprisonment, an unlimited fine, or both.
After receiving approval from the House of Lords, the bill is now moving towards the stage of "Consideration of Amendments." During this stage, both the House of Commons and the House of Lords will have the opportunity to discuss and propose any changes to the bill. Eventually, they must come to an agreement on the final version.The final step for the legislation to become official is obtaining a signature from King Charles III, also known as "Royal Assent."
The approval for the bill comes just within a week of the UK Law Commission requested the UK government to develop laws governing crypto assets.
Also, the Financial Conduct Authority (FCI) of the United Kingdom appraised that all domestic firms marketing cryptocurrencies to retail consumers in Britain