Based on a recent report, the UK Government aims to combat the use of Bitcoin and altcoins in money laundering. The draft law prepared in this direction was presented together with the economic crime law, which obliges foreign companies to disclose their identity information. For details cryptocoin.com keep reading.
Regulating the Bitcoin and altcoin market to combat black money
Russia’s invasion of Ukraine and rising cryptocurrencies have raised concerns about “black money” in the UK. The bill, which was prepared in England in 2018 but was suspended later and demanding the disclosure of the identities of unidentified landlords and landlords, came to the fore again with the Ukraine-Russia war and the danger of the Russian oligarch.
With this law, it is aimed to prevent criminals and crime-related persons from hiding behind land and property owners in England. The state can restrict the sale of property to companies that do not reveal the identities of the beneficiaries, and the managers of these real estate companies can be sentenced to up to 5 years in prison.
The bill is drafted to block the use of digital currencies, including Bitcoin, in financing illegal economic activities in the UK. A white paper on reforms to control the flow of ‘dark money’ and, where necessary, confiscate cryptocurrencies, will soon be presented to Companies House.
The law also regulates seizure of crypto assets
Proponents of the law argue that Russian aggression and the ongoing geopolitical crisis could motivate regulators to act quickly. The UK’s new economic crime law has addressed the use of digital assets in crime financing. With the proposed reform to the economic crime law, foreign owners and applicants registering for new companies will be required to provide information about their identity.
The bill also includes some articles that require individuals to show the source of their assets in order to strengthen the “undeclared asset orders system”. In this way, it is aimed to confiscate wealth that has no legal source.
The two proposals have mass appeal and authorize the UK Government to confiscate cryptocurrencies. The government’s concerns about the flow of ‘black money’ in the UK economy were heightened by the growing pressure of the Russia-Ukraine war. According to experts, the demand for cryptocurrencies may drop with the submission of new bill by UK regulators.
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