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British government reportedly working on proposal to regulate crypto assets

Updated: Jul 25, 2024
Published: Feb 28, 2022
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The UK government hopes to use the Economic Crime Bill to regulate crypto-assets as part of its newly proposed anti-money laundering rules.

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The UK government wants to regulate crypto

The Financial Times reports that the government is taking steps to restrict the flow of illicit funds after Russia was hit with economic sanctions following its invasion of Ukraine. The Economic Crime Bill aims to tackle crime in various sectors, including cryptocurrencies. Such a law has been in the works for some time but was postponed in favour of other measures that had more appeal to the masses.

A February report by the House of Commons Finance Committee listed several reforms to address regulatory shortcomings in the economic crime sector. Ministers will soon publish a white paper proposing reforms to Companies House, the U.K. registry where all companies must file their financial statements and other information.

What is the Economic Crime Bill?

The Economic Crime Bill proposes new measures to force cryptocurrency companies to comply with the country's anti-money laundering and economic sanctions laws. In conjunction with the crypto guidelines, it proposes to track the identity of beneficial owners of assets and require foreign business owners to disclose their identity.

To achieve this, the proposal sets out the conditions for introducing more identity requirements for companies registering with Companies House. These steps are aimed at preventing the abuse of UK corporate structures to conceal funds and tightening the grip on illicit financing in the property sector.

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