The focus on crypto regulation is part of the United Kingdom government’s plan to fight economic crime, which also includes encompassing law enforcement’s ability to seize assets.
The government of the UK has announced plans to step up regulation of crypto assets in its efforts to respond to economic crime in the country.
In a policy paper released on March 30, the UK Treasury and Home Office said it planned to “robustly” regulate crypto to fight illicit use of digital assets. The focus on regulation was part of the government’s economic crime plan from 2023 to 2026, which also included pooling “the knowledge and abilities of law enforcement agencies” to review and strengthen how crypto assets involved in legal proceedings may be seized and stored.
The UK government said it expected criminals to shift their crypto transactions to “less regulated exchanges and services” in other jurisdictions. The Financial Conduct Authority (FCA) will be working with its international counterparts to exchange information related to its response on regulation and supervision of crypto.
The government said it will coordinate with various agencies to implement the Financial Action Task Force’s travel rule as well as pass the Economic Crime and Corporate Transparency Bill by the end of the fourth quarter of 2023.