UK authorities will soon have restrictions on crypto holdings
The UK government recently released a set of legal instruments stating that UK law enforcement authorities will be able to freeze crypto assets used in crime without requiring a conviction from the end of April.
In the year In broad legal proceedings.
Additionally, authorities can retrieve crypto assets directly from exchanges and escrow wallet providers. They also have the option to liquidate crypto assets if needed.
While it doesn't specify the process for doing so, the most common way to destroy a crypto token is by burning it, transferring the tokens to a burned wallet address and putting them out of circulation.
The law will be effective from April 26.
Due in September 2022, the approved law aims to expand authorities' ability to control the use of crypto in crimes such as cybercrime, fraud and drug trafficking, Cointelegraph reported.
Related: UK may pass staking, stablecoin laws in six months: Report
One of the provisions of the Economic Crime and Corporate Transparency Act allows for the recovery of crypto-assets used in crime without arrest, as some individuals may be found guilty by remaining offshore.
However, a British victim of a crypto scam, who lost nearly $46,000 to scammers, has revealed that UK authorities may be “incompetent to crack down on crypto crimes against UK residents”.
He said the agency failed to take appropriate steps to recover the looted money.
Meanwhile, the UK government recently announced that it intends to pass new laws governing stablecoins and crypto staking within the next six months.
In the year
“We're very clear that we want to get those things done as quickly as possible. And I think those things are doable in the next six months.”
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