Under the new laws, the enforcement agencies in the UK can seize people’s Bitcoin holdings as a part of a crime investigation.
The United Kingdom (UK) is a hub of crypto and the Financial Conduct Authority (FCA) is responsible for the regulation of the crypto sector with the help of traditional financial rules & some additional new laws. In the UK only a particular number of crypto companies are allowed to provide crypto services, as laws are very strict.
As we know, the Economic Crime and Corporate Transparency Bill came to light in the last year. The UK’s authorities passed the bill, which aims to provide authority to enforcement agencies to confiscate cryptocurrency assets, including Bitcoin, involved in criminal activities legally.
Starting at the end of April, new Statutory Instrument documentation from the UK
government will allow law enforcement to freeze #crypto assets linked to criminal activities, even without a prior conviction. pic.twitter.com/mSpg3xL0lW— Ajay Kashyap (@EverythingAjay) March 3, 2024
The enforcement body may seize the digital assets for up to 90 days, as a part of an investigation of linked criminal activity. This new rule will come into effect on 26 April 2024.
This new rule is a very big hammer against all those bad actors who are involved in illegal activities & misusing cryptocurrencies for illegal payments.
Earlier this the UK authorities many times confiscated Bitcoin & cryptocurrencies in link with illegal & unethical activities. In the latest, the UK Metropolitan Police confiscated over £1.4 billion worth of Bitcoin, following an investment scam in China. Experts believe that the latest bill will provide a more systematic & precise way to fight crypto crimes in the UK.
It seems law & enforcement agencies are now wise enough to tackle some high profile #crypto linked illegal activities. pic.twitter.com/KOqfPil4kg
— Bitcoinik (@Bitcoinikdotcom) March 3, 2024
Some people are considering this news as a bad sign for the Bitcoin bull run but here we need to understand that here it is a law to protect people against crypto crime. Such rules & laws will degrade the confidence of bad actors who are using cryptocurrencies in illegal activities.
Read also: World Economic Forum (WEF) describing the positive impact of Bitcoin
