According to information posted on the Parliament’s website, the United Kingdom has passed a new law to freeze illegal crypto activities without the need for a court order. The Royal approval for the legislation officially came through on 26th Oct.
The “Economic Crime and Corporate Transparency Act” targets drug and cyber crimes. The new regulatory framework enhances the powers of government agencies, such as local police, allowing them to seize and freeze crypto assets related to money laundering, fraud, and ransomware attacks without the need for a court order.
The law was introduced in September last year and underwent several amendments before receiving formal approval.
The foggy island nation, known for its ambition to become a global crypto hub, has enacted several laws to legalize cryptocurrency domestically. According to Chainalysis’s October report, the United Kingdom is the largest cryptocurrency trading volume country in Central, Northern, and Western Europe. The Recap platform statistics in February ranked London as the most crypto-friendly city in the world, surpassing both Dubai and New York.
However, the UK has recently been tightening its grip on crime and fraud in the industry. UK authorities have also seized hundreds of millions of dollars in cryptocurrency from criminals.
The new law reflects the UK government’s determined move to regulate the burgeoning industry. The Financial Conduct Authority (FCA) recently introduced new advertising regulations, requiring crypto companies to warn users about potential risks in investment products. Not only is there strict supervision, but the FCA also announced heavy penalties, including up to 2 years in prison for non-compliance.
Among the list of over 100 crypto companies operating illegally in the UK, the FCA has also listed both HTX (formerly Huobi) and KuCoin.