UK to introduce simplified system for freezing and recovering crypto assets

The initiative is aimed at combating money laundering and circumventing sanctions

23.09.2022 - 09:40

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What’s new? The UK government has introduced a new bill to make it easier for law enforcement agencies to seize, freeze and recover crypto assets linked to criminal activity. The document, which has been worked on by several British agencies, already passed its first reading in the House of Commons, with the second scheduled for October 13.

Press release by the UK government

More details about the new bill. The document is based on the earlier Economic Crime Act that allowed regulators to impose sanctions against Russia and freeze relevant assets in the country. That said, regulators are still concerned that some Russians are using cryptocurrency to circumvent restrictions.

“Domestic and international criminals have for years laundered the proceeds of their crime and corruption by abusing UK company structures, and are increasingly using cryptocurrencies. These reforms – long awaited and much welcomed – will help us crack down on both,” said Graeme Biggar, director general of the National Crime Agency.

However, even before the bill appeared, the British authorities were not powerless in this regard. BBC reported that in July 2021, police in London seized a record 180 million British pounds ($200 million) in cryptocurrency linked to money laundering.

On July 20, the UK Treasury introduced a bill to Parliament to regulate stablecoins. The document proposes to regulate stablecoins as a form of payment. Its main purpose is to improve the flexibility and competitiveness of the country’s financial system and to create a standard for the use of stablecoins when making transactions

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