The government of the United Kingdom has laid out plans to step up regulation of crypto assets in its efforts to respond to economic crime in the country.<\/p>\n
In a policy paper released on March 30, the U.K. Treasury and Home Office said it planned to \u201crobustly\u201d regulate crypto to fight illicit use of digital assets. The focus on regulation was part of the government\u2019s economic crime plan from 2023 to 2026, which also included pooling \u201cthe knowledge and abilities of law enforcement agencies\u201d to review and strengthen how crypto assets involved in legal proceedings may be seized and stored.<\/p>\n
\u201cThese steps will be in keeping with our ambition to make the U.K. an attractive destination for cryptoassets and cryptoasset innovation in the world,\u201d said the plan. \u201cChallenging as it is, effective cryptoasset regulation benefits everyone, including consumers and firms.\u201d<\/p>\n
According to the policy paper, the U.K. government said it expected criminals to shift their crypto transactions to \u201cless regulated exchanges and services\u201d in other jurisdictions. The country\u2019s Financial Conduct Authority, or FCA \u2014 one of the bodies behind enforcement of crypto asset regulation \u2014 will be working with its international counterparts to exchange information related to its response on regulation and supervision of crypto.<\/p>\n
\u201cThe [National Crime Agency]\u2019s National Assessment Centre assesses that based on estimates of UK transaction volumes, illicit cryptoasset transactions linked to the UK in 2021 likely equated to at least \u00a31.24 billion (~1% of total transaction value) with a realistic possibility they were significantly higher.\u201d<\/p><\/blockquote>\n
As part of its plan of action, the government said it planned to coordinate with various agencies to implement the Financial Action Task Force\u2019s travel rule as well as pass the Economic Crime and Corporate Transparency Bill by the end of the fourth quarter of 2023. Other goals included improving communications between the FCA and crypto firms in the second quarter of 2024.<\/p>\n