UK Plans to Tighten Crypto Regulation
The UK government has unveiled a three-year “Plan to Combat Economic Crime,” which includes measures to strengthen the fight against the use of cryptocurrencies for criminal activities.
These measures include reducing fraud, money laundering, combating kleptocracy, and curbing opportunities to evade sanctions.
It has been noted that while most cryptocurrency transactions are legitimate, their pseudo-anonymous and cross-border nature makes them attractive for illegal activities.
In 2021, these activities accounted for approximately 1% of total transactions, amounting to £1.24bn and rising.
To counter this trend, the government plans to regulate crypto-asset transactions to protect consumers and promote economic growth. This will provide both consumers and businesses with the necessary confidence and clarity.