The UK government has published its Economic Crime Plan to crack down on money laundering and illegal activities in the cryptocurrency sector. The plan involves creating a separate task force dedicated to the issue within the Financial Conduct Authority (FCA).
The UK government has released its Economic Crime Plan after deliberation with institutions, high-ranking officials, and law enforcement. The plan outlines details on how to take on so-called ‘dirty money‘ in the cryptocurrency space.
Economic Crime Plan
In a statement to the press, Chancellor of the Exchequer, Philip Hammond said that despite the UK having “one of the toughest systems for combatting money laundering,” too many people are still being defrauded. Overall, cryptocurrency crime impedes economic growth which is why the UK government plans to tackle it.
As part of the Economic Crime Plan, the government wants to create a new regime within the Financial Conduct Authority (FCA) which specializes in cryptocurrencies. The UK’s financial watchdog would be responsible for “going beyond international standards to create one of the most comprehensive global responses to the use of crypto assets in illicit activity.”
The UK Takes on Economic Crime
The news comes at a time when the UK’s FCA is considering banning cryptocurrency-related financial products, like derivatives. Again, the justification for the ban was due to the “prevalence of market abuse and financial crimes,” similar language used in the Economic Crime Plan.
Of course, cryptocurrencies weren’t the only topic of conversation in the newly-released plan. Other areas covered include risk assessment, how to better integrate the UK into global finance, and combating economic crimes in both private and public institutions. The economic plan is meant to be comprehensive in outlining the strategy for the UK government until 2022.
Do you believe the UK’s future crackdown on cryptocurrencies will hurt the market and potentially push investors away? Let us know your thoughts in the comments below.