The UK Parliament is nearing the passage of a new bill aimed at safeguarding investors against cryptocurrency-related financial crimes.
The Economic Crime and Corporate Transparency Bill, initiated in September 2022, has progressed through the UK’s legislative process, now awaiting final approval. The House of Lords has advanced this legislation, which not only addresses illicit cryptocurrency activities but also focuses on corporate transparency and foreign business registrations. The bill’s next step involves review by the House of Commons, followed by royal assent—a formal endorsement by the monarch—before becoming law.
The primary objective of this bill, proposed in 2022, is to combat financial crimes associated with cryptocurrencies, including money laundering and fraud. To achieve this, the bill mandates that cryptocurrency businesses register with the Financial Conduct Authority (FCA) and adhere to anti-money laundering and counter-terrorism financing regulations. It also grants the FCA the authority to impose sanctions on crypto enterprises that violate these rules.
The UK has been making significant strides in the crypto sector since Brexit, which opened up opportunities by reducing regulatory barriers and fostering innovation. This favorable environment has attracted professionals and experts who see cryptocurrencies as a potential boon to the country’s economy.
The UK government has displayed optimism about cryptocurrencies, recognizing their economic growth potential. Officials aim to establish a regulatory framework that balances innovation and consumer protection, setting the UK apart from the EU, which has imposed stricter regulations on crypto transfers.
However, challenges persist, including inconsistency in the UK’s stance on the cryptocurrency industry. A study commissioned by British lawmakers likened the sector to gambling, highlighting the need for clarity and consistent regulations to promote crypto’s growth and development in the UK.
By FCCT Editorial Team
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