The proposed UK Economic Crime and Corporate Transparency Bill announced this week will make it easier and quicker for enforcement agencies including the National Crime Agency (NCA) to “seize, freeze and recover cryptoassets,” according to an official statement.
Described by business secretary Jacob Rees-Mogg as “historic”, the bill seeks to crack down on fraud and money laundering in all avenues of the UK economy through sweeping Companies House reforms.
The bill builds on the Economic Crime (Transparency and Enforcement) Act that came into force in March and was used to direct sanctions against Russia.
Commenting on the proposed measures, Graeme Biggar, director general of the NCA, 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.”
The UK government has sought to balance an open crypto economy with robust legal checks and balances.
A policy statement published in August aimed to clarify the rules and regulations surrounding the promotion of high-risk assets, including crypto assets.
Under Rishi Sunak, the Treasury outlined a framework “to make Britain a global hub for cryptoasset technology and investment,” though plans have since been put on hold following Sunak’s resignation from the front bench.
A second reading of the UK Economic Crime and Corporate Transparency Bill before the Commons is scheduled for October 13.