25. Juli 2024

UK Law Grants Authorities Power to Confiscate Crypto

• The UK’s Economic Crime and Corporate Transparency Bill has passed a third reading after a meeting of the House of Lords.
• If officially approved, the legislation will allow authorities to seize cryptocurrencies related to financial crime.
• The Financial Conduct Authority (FCA) of the United Kingdom reminded that all domestic firms marketing cryptocurrencies must comply with a designated promotion regime.

UK Bill Empowering Authorities to Confiscate Crypto Approved by House of Lords

The UK’s Economic Crime and Corporate Transparency Bill has been approved by the House of Lords (the Parliament’s upper chamber). If officially approved, it would enable authorities to confiscate cryptocurrencies related to any kind of financial crime.

Legislation Needs Further Steps Before Going Live

The legislation needs to pass “Consideration of Amendments” and “Royal Assent” before going live. It was initially introduced in 2022 in an effort to combat financial crime and offer protection to locals.

FCA Reminds Domestic Firms Marketing Cryptocurrencies Must Comply with Designated Promotion Regime

On another note, the Financial Conduct Authority (FCI) of the United Kingdom reminded that all domestic firms marketing cryptocurrencies to British consumers must comply with a designated promotion regime.

Crypto Assets Are Technological Enablers for Criminal Activity

Authorities have argued that crypto assets are “an attractive technological enabler for criminal activity” due to their pseudo-anonymous and transnational nature. This is why they need additional jurisdiction powers in order to be able confiscate digital currencies involved in activities such as terrorism financing.

National Assessment Center as Part of Legislation’s Measures

The Economic Crime and Corporate Transparency Bill also includes measures from the National Assessment Center as part of its anti-financial crimes objectives.