With the new Economic Crime and Corporate Transparency Act, the UK government has taken a big step to fight economic crime in the crypto market.
Passed on October 26, this law aims to tackle fraud and money laundering, making the UK’s open economy safer.
UK Government Can Seize Crypto Without a Conviction
One key part of the Act is the stronger role given to Companies House, an executive agency responsible for registering companies, employing registrars, and handling company incorporations. It can now check company directors’ identities more closely. This will help remove fraudulent companies from the official register and share useful information with crime-fighting agencies.
Law enforcement now has more power to seize and manage cryptocurrencies, often used for illegal financial activities. This change will also help deal with false lawsuits and hold big companies responsible for wrongdoings.
Home Secretary Suella Braverman stated that this Act will help in fighting organized crime linked to terrorist funding, fraud, and money laundering, thus enhancing the safety of the country.
“I am committed to ensuring criminals do not profit from their offending and this landmark act will help law enforcement clampdown on the tactics they use. It will have a big impact on our ability to fight organised crime, including terrorist funding, fraud and money laundering, and that will ultimately help keep us all safe,” Braverman said.
Business Minister Kevin Hollinrake also supported the Act, saying it will help deal with criminals who misuse the UK’s open economy. These changes will stop companies from hiding behind fake identities and will provide more clear information to the public on companies doing wrong.
“These reforms will remove the smoke and mirrors around companies hiding behind false identities, provide further protection to the public from companies fraudulently using their addresses, and deliver better data to support business and lending decisions across the economy,” Hollinrake said.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
This Act brings the biggest change to Companies House in its 180-year history. Once active, it will quickly work to remove wrong office addresses used to fraudulently set up companies, improving the company register’s information quality.
Moreover, the new ability of law enforcement to target illegal cryptocurrencies is a big move, especially considering the National Crime Agency’s finding of over $1.2 billion of illegal cash sent overseas using cryptocurrencies in 2021.
The Act makes it easier for the police and the National Crime Agency to seize cryptos and turn them into money before a legal hearing. This strong action from the UK government against crypto misuse shows the dedication to cleaning up the economic scene from illegal financial activities, ensuring a fair ground for all businesses.
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