The policy paper unveiled by the UK Treasury and Home Office outlines plans to formulate tighter crypto regulation to constitute its fight against economic crime. The strategic plan released by the UK on March 30 portrays the government’s response to economic crime.
Regulatory-backed Initiative to Enforce Robust Fight Against Crypto-Related Economic Crime
The policy paper seeks a regulation-backed initiative allowing the enforcement agencies to seize and store the crypto assets involved in committing the alleged crime.
Tightening crypto regulations to authorize the seizure and storage of involved cryptos reveals a step up to contain the fraudulent activities perpetrated by bad actors in the digital assets industry. Although noncommittal on the specific data, the policy paper reveals that the plan is projected to run till 2026.
The UK plans to leverage the superior capabilities of pooled law enforcement agencies to effectively review and strengthen the seizure and storage of confiscated crypto assets during legal proceedings. The step-up approach aligns with the UK’s ambitions of transforming the country into an attractive destination for crypto innovation.
Bringing Regulatory Clarity Necessary to Benefit Clients and Firms
The policy paper indicates that however challenging crypto regulation has become, its realization in the UK would bring clarity projected to benefit consumers and firms ultimately.
The policy paper captured the UK government’s expectations that criminals would shift crypto-related operations to exchanges and services offered in jurisdictions perceived to have fewer regulations.
The policy paper confirms the involvement of the UK’s Financial Conduct Authority (FCA) among the bodies tasked with enforcing the robust crypto asset regulation. FCA would collaborate in joint operations involving international counterparts in conveying exchange information concerning crypto regulation and supervision.
Multiple Stakeholders’ Efforts to Combat Illicit Crypto-related Transactions
The policy paper cites the National Crime Agency and National Assessment Centre statistics that illicit crypto-related transactions approximated £1.24 billion in 2021. The crypto-related crime rate was perhaps higher than the 1% transaction value, given the huge transaction volumes executed in the country.
The UK’s policy paper portrays a jurisdiction projecting to combat crypto-related crime from various fronts. It promises to deliver coordinated action for all government agencies.
The coordinated platform would expedite the implementation of the Financial Action Task Force rule on travel. Also, it targets the enactment of the Economic Crime and Corporate Transparency bill by the final quarter of 2023.
The policy paper outlines that the UK seeks improved communication and active engagement of crypto firms by mid-2024.
The pursuit of robust response to crypto-related crime on multiple fronts coincides with the UK government obliging taxpayers to exercise self-reporting. Nevertheless, the UK Treasury revealed in a report dated March 15 plans to amend the self-assessment forms on crypto-related transactions in the 2024-25 tax period.
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