The bill on economic crime and business transparency in the United Kingdom passed the third reading in the House of Lords, indicating significant progress towards its official approval. This legislation aims to allow authorities iseize cryptocurrenciesrelated to financial criminal activities. The Financial Conduct Authority (FCI) of that country also reminded companies that trade cryptocurrencies and British consumers the need to comply with a designated promotion regime.
The House of Lords made minor changes to the bill to ensure its effectiveness. Legislation was initially introduced in 2022 for the purpose of combating financial crime and protecting local interests. In addition to allowing for the confiscation of cryptocurrencies linked to criminal activities, the Economic Crimes and Corporate Transparency Bill would give UK authorities additional jurisdiction to seize digital currencies related to the financing of terrorism.
Officials argued that crypto assets are attractive facilitators for criminal activity due to its pseudo-anonymous and transnational nature. According to the National Evaluation Center, the illicit crypto transactions in the UK they accounted for around $1.5bn in 2021, although it is estimated that the actual figures could be much higher.
Cryptocurrencies: what is missing for it to become Law
Following approval in the House of Lords, the bill now heads to “Consideration of Amendments” stagewhere both houses of Parliament (House of Commons and House of Lords) can debate possible changes and come to a mutual agreement.
The last step before the legislation becomes official is the signing of the King Charles IIIknown as “Royal Assent“. It is important to mention that the last British monarch to reject a law passed by both houses was Queen Anne in 1708. From then on, no monarch has refused “Royal Assent” to a law.
In addition to potential future rules, the FCA has issued a warning to all companies marketing crypto assets to consumers in the UK, inasking them to comply with the financial promotion regime before October 8, 2023. After that deadline, crypto entities must perform promotions through an authorized person and ensure that their products meet the requirements of the FCA against money laundering. Those who do not register can face up to two years in prison, an unlimited fine, or both.
The regulator warns that it will crack down on those who carry out illegal promotion activitiesincluding inclusion in the warning listremoval of websites, social media accounts and applications, and other necessary enforcement measures.
Source: Ambito
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