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March 4, 2024 by Kashif Saleem
In a landmark move, the United Kingdom has strengthened its legal framework to fight financial crimes in the cryptocurrency industry. The Financial Conduct Authority (FCA) which supervises the growing crypto market of the UK will soon be endowed with more authority to tackle illegal activities surrounding digital assets.
Starting at the end of April, new Statutory Instrument documentation from the UK🇬🇧 government will allow law enforcement to freeze #crypto assets linked to criminal activities, even without a prior conviction. pic.twitter.com/mSpg3xL0lW
— Ajay Kashyap (@EverythingAjay) March 3, 2024
The Economic Crime and Corporate Transparency Bill, launched last year, represents the turning point of this regulatory development. It is designed to grant UK authorities power to seize Bitcoin or other crypto funds should they be suspected of being involved in criminal activities. This crucial step also fits into the general plan to preserve safety within the banking system in Britain and stop hackers from engaging in the illegal use of virtual assets.
An item of property that is, or that contains or gives access to information that is likely to assist in the seizure […] of any crypto asset, the legislation said.
UK Legislation: Balancing Crypto Innovation And Security
The latest bill is not just a law enforcement instrument; it is a guiding star for investors and participants in the crypto-economy. The legislation provides a 90-day seizure period of digital assets during criminal investigations that allows it to act as a buffer against swift movements of illegal money often associated with digital assets related crimes.
The rule will come into effect on April 26, 2024. It is also intended to discourage people from using the technology for illegal activities, as it can lead to anonymous transactions. This message is clear; United Kingdom will not accommodate crypto crimes.
These moves are not meant to kill innovation or investment but rather to keep them safe. United Kingdom is giving a head start on how to have a safe cryptoworld for real growth but it also sets a stage for stable crypto environment that can facilitate true growth and build investor’s trust again.
The UK’s proactive approach is a significant milestone in synchronizing vitality of the virtual assets market with the solidity of the traditional financial controls. It is expected to become a model for other countries as they try to strike a balance between digital currencies’ potential and security needs.
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