UK law allows confiscation of cryptocurrencies

The British began the process of sanctioning illegal practices in the digital currency market

The UK government is currently introducing a law to empower authorities to "seize, freeze and recover" digital currencies such as Bitcoin (BTC). This act is aimed at solving the problem of illegal finance, reducing economic crime, but also helping to develop enterprises.

Cryptocurrencies targeted by the British government

In an announcement on Thursday 22 September, the UK government said lawmakers had introduced a bill on economic crime and corporate transparency in Parliament as part of an effort to finally get rid of "dirty money" from the country.

A law first announced by King Charles - who was still a prince at the time - in May of this year, during Queen Elizabeth's speech to both houses of Parliament of Great Britain. It was then explained that the new law was aimed at "solving the problem of illegal finance, reducing economic crime and helping companies to grow."

It is worth mentioning here that the Ministry of Economy and Finance of the country is also working on including stablecoins as a means of payment in its regulatory framework.

The draft law includes provisions to reduce the "bureaucracy around responsibility for confidentiality" and give UK law enforcement powers "to compel companies to provide necessary information that may be related to money laundering or terrorist financing", including cryptocurrencies.

- The new law will make it easier and faster for law enforcement agencies such as the National Crime Agency to seize, freeze and recover cryptocurrencies - digital currencies are increasingly used by organized criminals to launder the proceeds of fraud, drug trafficking and cybercrime - the British government said, adding that strengthening powers the Criminal Proceeds Act will modernize the rules to ensure that agencies can keep pace with rapid technological change and prevent further crime from being financed by crypto assets.

- Domestic and international criminals have for years been laundering the profits of their crime and corruption, abusing corporate structures and the banking sector in the UK. To this end, these people are increasingly using cryptocurrencies. These reforms - long-awaited and very welcome - will help us deal with all these negative phenomena, added Graeme Biggar, CEO of U.K.'s National Crime Agency.