The UK’s Economic Crime and Corporate Transparency Bill passed a third reading after a meeting of the House of Lords (the Parliament’s upper chamber). If officially approved, the legislation will allow the authorities to seize cryptocurrencies should they have a relation to some sort of financial crime.
On another note, the Financial Conduct Authority (FCI) of the United Kingdom reminded that all domestic firms marketing cryptocurrencies to British consumers must comply with a designated promotion regime.
Marching Toward a ‘Royal Assent’
As revealed on Twitter, the House of Lords made “small changes to make sure the bill is effective.” The legislation was initially introduced in 2022 in an effort to combat financial crime and offer protection to locals.
The Economic Crime and Corporate Transparency Bill would also grant the British authorities additional jurisdiction to confiscate digital currencies that participate in criminal activities, such as terrorism financing.
The officials have previously argued that crypto assets are “an attractive technological enabler for criminal activity.” They also claimed that detecting wrongdoers could be difficult due to “the pseudo-anonymous and transnational nature” of bitcoin and the altcoins.
The National Assessment Center maintained that illicit crypto transactions in the UK equaled approximately $1.5 billion in 2021 (a mere 1% of the total transaction value). Nonetheless, the entity believes the real figures could be much higher.
Following the House of Lords’ approval, the bill is now heading towards “Consideration of Amendments,” where both chambers of the Parliament (the House of Commons and the House of Lords) can discuss any changes and must eventually reach a mutual agreement.
The last step of the legislation before becoming official is a signature from King Charles III, known as “Royal Assent.” It is worth noting that the last British monarch to reject a law passed by both chambers was Queen Anne in 1708. She withheld “Royal Asset” on the Scottish Militia Bill after her minister advised her that such a division would not be loyal to the crown.
The FCA’s Recommendation
Besides the possible upcoming rules, Britain’s top regulator – the FCA – has issued a warning to “all firms marketing crypto assets to UK consumers” to comply with the financial promotion regime by October 8, 2023. As such, the watchdog expects to put most digital asset firms that offer services to British retail customers under its scope.
After that deadline, crypto entities must introduce promotions via an authorized person and ensure their product complies with the FCA’s anti-money laundering requirements. Those who fail to register face up to two years imprisonment, an unlimited fine, or both.
“We will take robust action against persons illegally promoting to UK consumers. This may include but is not limited to placing firms on our warning list requesting takedowns of websites, social media accounts, apps, and all other promotions that are in breach, and enforcement action,” the regulator outlined.
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