The UK government has unveiled plans to tighten regulation of crypto assets in its efforts to answer economic crime within the country.
In a strategic document published on March 30, the UK Treasury and Home Office he said planned to “solidly” regulate cryptocurrencies to fight the illicit use of digital assets. The give attention to regulation was a part of the federal government’s 2023-2026 economic crime plan, which also included gathering “law enforcement knowledge and skills” to review and strengthen ways to seize and store crypto assets subject to legal proceedings.
“These steps might be in keeping with our ambition to make the UK a lovely destination for cryptocurrency and cryptocurrency innovation worldwide,” the plan reads. “While difficult, effective regulation of cryptocurrencies advantages everyone, including consumers and businesses.”
We come for corrupt elites and criminals who abuse our economic system.
New measures to fight economic crime were announced today https://t.co/I4S4lYlwyx pic.twitter.com/zQU4VV6g6D
— Home Office (@ukhomeoffice) March 30, 2023
According to the policy document, the UK government said it expects criminals to shift their crypto transactions to “less regulated exchanges and services” in other jurisdictions. The country’s Financial Conduct Authority (FCA) – considered one of the crypto asset enforcement bodies – will work with its international counterparts to share information related to its response to cryptocurrency regulation and supervision.
” [National Crime Agency]The National Assessment Center estimates that, based on UK transaction volume estimates, UK-linked illicit crypto-assets transactions in 2021 are prone to amount to no less than £1.24bn (~1% of total transaction value) with the realistic possibility that it was much higher. “
As a part of its roadmap, the federal government said it planned to coordinate with various agencies to implement the Financial Action Task Force Travel Rule, in addition to enact the Economic Crimes and Corporate Transparency Act by the top of Q4 2023. Other goals included improving communication between FCA and crypto corporations in Q2 2024
Related: The UK Police Council advises that there are officers trained in crypto enforcement in each unit
While the UK appears to be in search of answers to cryptocurrencies on many fronts – from law enforcement to regulation – taxpayers within the country have their very own reporting obligations. On March 15, the UK Treasury published a report announcing a change in self-assessment forms for crypto assets ranging from the 2024-25 tax 12 months.
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