- The UK government aims to crack down on the use of cryptocurrencies in money laundering based on a recent report.
- The proposal was introduced alongside the Economic Crimes Bill requiring foreign companies to reveal their identities.
- The recent Russian invasion and increase in cryptocurrency-related crime has fueled concerns about “dirty money” in the UK.
- Bitcoin’s correlation to stocks remained elevated and the bloodbath continued amid fears of a bear market.
The UK government has proposed reforms to seize cryptocurrencies alongside a bill to curb the origin of “dirty money”. Proponents believe that rising geopolitical tensions and Russian aggression could have fueled the proposal to grab the crypto.
UK moves quickly to stem flow of ‘dirty money’ into economy
As the cryptocurrency market bloodbath continues, the UK government has responded to money laundering through cryptocurrencies in its economy. Companies House has proposed legislation to increase the UK government’s power to seize cryptocurrencies from its economy.
The bill sought to limit the use of digital currencies in funding illicit economic activities in the UK. A white paper on reforms to control the flow of ‘dirty money’ and seize cryptocurrencies would soon be presented to the UK Registrar of Companies, Companies House.
Proponents argue that Russian aggression and the ongoing geopolitical crisis could have prompted the quick decision by regulators.
The new UK Economic Crimes Bill has addressed the use of digital assets in nefarious finance. The reform proposed in the Economic Crimes Bill would require foreign owners and applicants for the registration of new companies to provide information about their identity.
Both proposals have massive appeal, allowing the UK government to seize cryptocurrencies. Government concern over the flow of “dirty money” into the British economy grew with the mounting pressure of the Russian-Ukrainian war.
Demand for cryptocurrencies may plummet with the introduction of the new bill by UK regulators.
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