How Will The UK’s New Crypto Bill Affect The Market?
For years, the world of cryptocurrencies has developed at lightning speed without any intervention from the governments of the various countries. One of the characteristics of the market was also the lack of regulation which inevitably attracted ill-intentioned individuals.
Nevertheless, the current value of the cryptocurrency market makes it very difficult for governments to ignore. In recent years, several countries have taken the initiative to impose a number of rules on the cryptocurrency market throughout their territory. The United Kingdom is one of the very last to have developed a law on the use of cryptocurrencies.
New regulations imposed on crypto-currencies in the UK
Last Thursday, the United Kingdom presented a rather peculiar bill to Parliament. Indeed, this new law specifically targets cryptocurrencies insofar as it will give authorities the power to seize, freeze and recover cryptocurrencies more easily.
This bill comes at a time when the British authorities are stepping up their efforts to suppress all money laundering activities. According to government officials, digital currencies such as cryptocurrencies are increasingly being used by organized crime gangs to launder their profits relating to fraud, drugs and cybercrime.
What is this new law?
Introduced in the British Parliament under the name of “The Economic Crime and Corporate Transparency Bill”, this law brings multiple changes in several areas of finance in the United Kingdom. In terms of example, the application of this new regulation will significantly change the way a company must proceed to establish itself in the United Kingdom.
Indeed, all those who wish to register a company on the territory of the United Kingdom will have to verify their identity, among other changes. Thus, Companies House, the supervisory authority for companies in the United Kingdom, will have more powers to monitor and analyze the creation of companies.
Among the new powers granted to it, Companies House will have the freedom to share the data of individuals with public and private partners, and it will also be possible to report any illegal activities to the competent authorities. When it comes to cryptocurrencies, the bill is supposed to empower law enforcement to seize, freeze, and recover cryptocurrency assets.
All of these new rules are included in a 250-page document and are the subject of close collaboration between the Ministry of the Interior, the Ministry of Business, Energy and Industrial Strategy, the Fraud Office and the Public Treasury Service.