The UK Government has introduced the “Lake, Freeze and Recover” Crypto Assets Bill to Parliament.
This new bill gives law enforcement agencies more power to seize, freeze and recover crypto assets.
The bill specifically targets those engaged in criminal activities such as money laundering, drugs and cybercrime, along with cryptography, which acts as a key enabler.
The bill is called the Economic Crime and Business Transparency Bill.
This bill will help the authorities involved in targeting cryptocurrencies, which have been used for illegal purposes.
The Economic Crime and Corporate Transparency Bill introduced in Parliament is part of an effort to get “dirty money” out of the economy.
This bill includes a provision to reduce “red tape around the duty of confidentiality” and also allows law enforcement authorities to “compel companies to hand over information that could be related to money laundering or terrorist financing”. and that includes crypto too.
Increased use of cryptography to facilitate illicit activities
The bill also requires those registering a company in the UK to verify their identity, among other changes.
Among the other changes is that companies will have more potential to better monitor the creation of companies. This also includes the ability to cross-check data with public and private partners.
It also includes reporting suspicious activity to security agencies and law enforcement.
The UK government mentioned
The new law will allow law enforcement agencies such as the National Crime Agency to seize, freeze and recover crypto assets, the digital currency increasingly used by organized criminals to launder the proceeds of fraud, the drugs and cybercrime, it will be easier and faster. Strengthening the powers of the Proceeds of Crime Act will modernize the legislation to ensure agencies can keep pace with rapid technological change and prevent assets funding more crime.
Graeme Biggar, quoted by the director general of the UK’s National Crime Agency,
“For years, domestic and international criminals have laundered the proceeds of their crime and corruption by abusing UK company structures and are increasingly using cryptocurrencies. These long-awaited and welcome reforms will help us repress both.
The bill is ready for a second reading
The formulation of the Economic Crime Transparency and Enforcement Act has helped regulators impose sanctions on Russia and also freeze assets in the country. This bill is scheduled for a second hearing on October 13, which is currently scheduled.
According to the government, the Metropolitan Police claimed there had been an increase in cryptocurrency seizures in 2021.
The number of users within the crypto space has grown.
In the month of July 2021 alone, police reportedly seized £114 million and £180 million, which was roughly $331 million in crypto, which has been linked to international money laundering.
