The government of the United Kingdom is cracking down harder on cryptocurrencies, giving police more authority to crack down on crimes using crypto.
This is in accordance with the newly enacted Economic Crime and Corporate Transparency Act 2023, which gives the government new powers to combat the illicit usage of cryptocurrency.
Even in the absence of a conviction, the law gives police the authority to seize digital assets associated with criminal suspicions. This marks a major change in strategy for the UK, which will enable them to move quickly to stop more illegal behavior and collect possible evidence.
Officials may even take cryptocurrency assets straight from cryptocurrency exchanges and providers of custodial wallets, according to the Act. The goal of this action is to stop criminals from getting their hands on illegally obtained money by cutting off their supply.
The law gives the government the ability to liquidate bitcoin holdings if the situation becomes too bad. In most cases, this procedure entails “burning” the tokens, which means permanently removing them from circulation.
Concerns about the possible illicit usage of digital currency have led to the UK’s tough attitude. Along with its foreign allies, the UK is also sanctioning those linked to these crimes. The goal of these sanctions is to cut off their access to international finance by freezing their assets.
Additionally, during the next half-year, the British government intends to implement extensive rules. Included in this are the establishment of transparent standards for staking services, in which investors get incentives for maintaining digital currency holdings, and stablecoins, which are digital assets tethered to conventional currencies.
Some express worry about the possible effects on individual rights and innovation in business, despite the fact that the UK’s proactive stance on tackling cryptocurrency issues is praiseworthy.
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