UK Legislators Target Crypto

Legislators in the United Kingdom’s upper house of parliament are advancing legislation aimed at expanding authorities’ ability to target cryptocurrencies used for illicit purposes.

In a session of the U.K. Parliament’s House of Lords on July 4, lawmakers conducted the third reading of the Economic Crime and Corporate Transparency Bill, which was introduced in September 2022 as part of efforts to streamline law enforcement’s authority to combat crypto-related financial crime.

Members of the House of Lords did not appear to propose any modifications about crypto enforcement during the bill’s most recent reading, characterizing amendments as “minor” or “tidying up.”

A version of the measure dated June 27 included provisions amending existing frameworks to provide authorities with greater discretion in the confiscation and civil recovery of crypto assets.

In addition, the legislation clarified the government’s authority over digital assets “intended for terrorism” or similar purposes.

Before royal assent can be granted, British legislators will consider all amendments to the bill. As part of its plan to combat economic crime between 2023 and 2026, the U.K. government announced in March its intention to “rigorously” regulate cryptocurrencies to combat the illicit use of digital assets.

Legislators stated at the time that they intended to pass the Economic Crime and Corporate Transparency Act by the fourth quarter of 2023 and coordinate with various agencies to implement the Travel Rule of the Financial Action Task Force.

On June 19, the House of Lords held a third reading of the Financial Services and Markets Bill. The legislation, which was signed into law on June 29, was intended to facilitate the incorporation of crypto assets in the nation.