UK Gets Tough On Crypto With New Laws To Seize And Freeze Digital Assets

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Law enforcement agencies in the UK are set to get new powers to seize and freeze crypto assets connected with criminal activity.

The Economic Crime and Corporate Transparency Bill, which also enable authorities to recover crypto assets, had it’s first reading in the House of Commons this week.

The 250-page bill is designed to “strengthen the UK’s reputation as a place where legitimate businesses can thrive while driving dirty money out of the UK,” according to a Government spokesperson.

It also contains reforms to the way in which Companies House processes information, and will see the organisation handed new powers to “check, challenge and decline incorrect or fraudulent information, making it a more active gatekeeper over company creation”.

Many crypto scammers set up bogus companies with Companies House to add legitimacy to their criminal enterprises. The process is simple, quick and cheap and allows virtually anyone to register a company and receive an official Certificate of Incorporation.

Companies House will also see its investigation and enforcement powers upgraded. This will enable the organisation to cross check data more thoroughly, and report suspicious activity to law enforcement agencies.

Police record steep rise in crypto asset seizures

Business Secretary Jacob Rees-Mogg said: “We want the UK to be the best place in the world to invest and start a business, but we must not allow this openness to be exploited by fraudsters misusing the identities of innocent people, or corrupt elites attempting to disguise their dodgy dealings.

“This historic Bill will equip Companies House and law enforcement with the tools they need to root out criminals attempting to hide their activities without burdening law-abiding companies with unnecessary bureaucracy.

“Above all, via strict enforcement measures, we are telling investors that the UK is open for legitimate business only.”

The Metropolitan Police, the UK’s large police service cover the Greater London area, has reported a steep rise in crypto asset seizures over recent years.

Director General of the National Crime Agency Graeme Biggar said: “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.”