The UK government has suggested improvements to the seizure of cryptocurrencies, as well as a measure to limit the origin of “dirty money.” Proponents believe the idea to take cryptocurrency was motivated by increased global tensions and Russian aggressiveness.
The UK government has responded to money laundering through cryptocurrencies in its economy, even as the crypto market massacre continues. Companies House has proposed legislation that would give the UK government the authority to confiscate cryptocurrencies in the country’s economy.
The measure was aimed at preventing the use of digital currencies in the UK to fund illegal activities. Companies House, the UK’s registrar of enterprises, will soon receive a white paper on reforms to limit the flow of “dirty money” and seize cryptocurrencies.
Proponents believe that the authorities’ quick action was prompted by Russian aggressiveness and the ongoing geopolitical turmoil.
The use of digital assets in illicit finance has been addressed in the UK’s new economic crime bill. The proposed revision in the economic crime bill would compel foreign owners and applicants for new company registration to present identification information.
The two proposals, which would allow the UK government to take cryptocurrency, have widespread support. With the increasing strain from the Russian-Ukrainian war, the government’s anxiety about the flow of “dirty money” into the UK economy grew.
With the adoption of the new bill by UK officials, demand for cryptocurrencies could plunge.