The government of the United Kingdom has introduced legislation that offers wide-ranging reforms dealing with kleptocrats, organized criminals, and terrorists abusing the UK’s open economy.
The bill aims to eliminate money laundering and fraud. It offers crypto regulation to check the crypto assets’ illegal use.
King Charles introduced the Economic Crime and Corporate Transparency Bill in May this year in both houses of the UK Parliament. In an announcement, the lawmakers stated that the bill focuses on enriching their efforts of removing the ‘dirty’ money from the economy. According to Jacob Rees-Mogg, the Business Secretary, this is a ‘historic’ bill.
UK Seeks Cryptocurrency
With this bill, the reputation of the UK as a safe platform for the growth of legitimate businesses will enhance. The Economic and Finance Ministry of the country is also looking forward to incorporating stablecoins into this crypto regulation structure as a means of payment.
The provisions of the bill work against the ‘red tape around confidential liability.’ It authorizes law enforcement executives to take necessary actions to ensure that the businesses hand over information related to money laundering and terrorist financing. Pieces of information related to crypto transactions also come under its ambit.
Further, the bill would ensure that limited partnerships are not abused. To this effect, it would add to the strictness regarding registration and transparency requirements for these entities.
As per the reforms, anyone wishing to register a company in the UK must undergo a rigorous identity verification process. This would prevent the companies from acting as a means for financial and cyber crimes and foreign kleptocrats.
European Union and Crypto Regulations
The European Union is also constantly attempting to create an efficient regulatory framework for the crypto universe. The union will soon adopt the MiCA (Markets in Crypto Assets) bill.
This bill has its major focus on stablecoin regulation and consumer protection in the crypto world.
To a certain extent, the bill also offers regulations regarding Non-fungible tokens. The European Union is quite focused on the entire ambit of consumer protection in general and not just the crypto space.