The UK government has unveiled plans to step up regulation of crypto assets in its efforts to respond to economic crime in the country.
In a policy paper published on March 30, the UK Home and Treasury Office says it plans to “vigorously” regulate cryptocurrencies to fight the illicit use of digital assets. The focus on regulation was part of the government’s 2023-2026 economic crime plan, which also included pooling “the knowledge and capabilities of law enforcement agencies” to review and strengthen how they can be seized. and store the crypto assets involved in legal proceedings.
“These steps will be in line with our ambition to make the UK an attractive destination for crypto assets and crypto asset innovation in the world,” the plan read. “As challenging as it may be, effective regulation of crypto assets benefits everyone, including consumers and businesses.”
We’re coming for the corrupt elites and criminals that abuse our financial system.
New measures announced today to tackle economic crime https://t.co/I4S4lYlwyx pic.twitter.com/zQU4VV6g6D
—Home Office (@ukhomeoffice) March 30, 2023
According to the policy paper, the UK government said it expected criminals to move their cryptocurrency transactions to “less regulated exchanges and services” in other jurisdictions. LThe country’s Financial Conduct Authority, or FCA – one of the bodies behind the enforcement of crypto asset regulation – will work with their international counterparts to exchange information related to their response on cryptocurrency-related regulation and supervision.
“The National Center for Evaluation of the [Agencia Nacional del Crimen] assesses that, based on estimates of UK transaction volumes, illicit UK-linked crypto asset transactions in 2021 likely amounted to at least £1.24 billion (~1% of total transaction value) with a realistic possibility that they would be significantly higher.
As part of its action plan, the government said it planned to coordinate with various agencies to implement the Financial Action Task Force travel rule, as well as pass the Economic Crime and Corporate Transparency Bill by the end of the fourth quarter of 2023. Other goals included improving communications between the FCA and cryptocurrencies in the second quarter of 2024.
While the UK appears to be seeking a response to cryptocurrency on multiple fronts – from law enforcement to regulation – the country’s taxpayers face their own reporting obligations. On March 15, the UK Treasury published a report announcing that it would amend cryptocurrency self-assessment forms from the 2024-25 fiscal year.
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