A significant legislative effort to enhance authorities’ capabilities in addressing illicit cryptocurrency activities in the United Kingdom has reached its final stages of approval in the House of Lords. The Economic Crime and Corporate Transparency Bill, initially introduced in September 2022, is primarily designed to combat financial crimes related to cryptocurrencies.
After a year of thorough examination, the bill has progressed from the House of Commons to the House of Lords, where it now awaits final approval.
During the review process, the House of Lords made specific amendments to clarify the bill’s intent, focusing on the targeting of monetary proceeds derived from fraud and other financial crimes. Additionally, the bill includes provisions aimed at improving corporate transparency and regulating overseas business registrations.
In the final stage of the legislative process, the UK Parliament will either accept the proposed amendments or recommend further changes to the bill. Once approved, the bill will receive royal assent, marking the formal approval of the monarch and becoming law.
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Recent developments also indicate a willingness on the part of the UK’s financial regulator, the Financial Conduct Authority (FCA), to collaborate with cryptocurrency companies in establishing a much-anticipated regulatory framework for the industry.
Speaking at London’s City Week conference, FCA Executive Director Sarah Pritchard emphasized the importance of cooperation in shaping cryptocurrency rules and regulations. She stated,
“Let’s work together to shape our rules and regulations to benefit markets, consumers, and firms as crypto goes from niche to mainstream.”
Pritchard noted that the FCA’s responsibilities primarily revolve around ensuring that crypto firms operating within the UK adhere to Anti-Money Laundering and Counter-Terrorist Financing legislation.
Earlier, in a report by Todayq News on May 2, 2023, Lisa Cameron, a UK MP, expressed her strong support for maintaining crypto regulations to unlock sector potential while safeguarding consumers. Her motivation had arisen from a constituent’s rug pull incident. She chaired the Crypto and Digital Assets Group, collaborating with Prime Minister Rishi Sunak to position the UK as a global crypto-tech hub.