UK law enforcement to expand powers to seize crypto assets
UK law enforcement agencies have strengthened their ability to seize cryptocurrency assets in criminal cases, including terrorism, which is expected to take effect on April 26. Following the passage of the 2023 Economic Crime and Corporate Transparency Act, secondary legislation was approved this week, giving law enforcement agencies the power to seize and freeze cryptocurrency used in crimes. The soon-to-be-effective provisions include a cryptocurrency civil recovery system and a cryptocurrency asset seizure order that allows authorities to seize cryptocurrency-related items defined as "including or giving access to information that may assist in the seizure of...any cryptocurrency asset."
UK National Crime Agency says crimes in virtual universes must be treated as criminal offences
The UK's National Crime Agency has requested law enforcement officers to be prepared for potential virtual world-based crimes that could cause physical harm to victims in real life. NCA Director Graeme Biggar stated in an interview with the Evening Standard that rape and murder occurring in virtual reality may need to be considered as criminal offenses.<br>According to Biggar, users of virtual reality wearing haptic suits will be able to feel the physical impact of rape or murder. Haptic suits allow wearers to perceive actions taking place in virtual reality. This statement is part of a wider interview regarding the potential benefits and risks of emerging technologies such as artificial intelligence, which has given rise to popular applications such as ChatGPT and Google Bard.
UK court rules Craig Wright needs to prove ownership of 110,000 Bitcoins
According to CoinDesk reports, a UK court has ruled that Tulip Trading, owned by Craig Wright (aka Satoshi Nakamoto), must prove ownership of approximately 110,000 bitcoins, which are at the center of a case brought by a group of bitcoin developers in 2021.Previously reported, the Bitcoin Legal Defense Fund submitted a preliminary question application to the UK High Court, stating that "Satoshi Nakamoto" Craig Wright lacks evidence to prove that he truly owns the 111,000 bitcoins he claims to have lost. "If Craig Wright is the owner of the bitcoins in the 1Feex address, he has actually admitted to being the person who stole 80,000 BTC from Mt.Gox, because it is widely accepted in the cryptocurrency community that the bitcoins stored in the 1Feex address come from the Mt.Gox hack in March 2014."
UK Treasury select committee urges central bank and other institutions to exercise caution over rollout of retail digital pound
According to reports, British legislators are urging caution in the implementation of retail digital pounds, emphasizing the importance of finding a balance between technological progress and potential flaws. Members of the Treasury Select Committee have reservations about the possible introduction of retail digital pounds, calling for careful scrutiny before implementation. Despite recognizing the potential benefits of innovation, the committee urges the Bank of England and the Treasury to thoroughly evaluate the necessity of this step, while considering the associated costs and risks. During this period, the committee's report suggests imposing lower initial restrictions on the value of retail digital pounds to mitigate potential bank runs during market instability. This specific preventive measure aims to prevent a large amount of deposits from being transferred to digital wallets, which could increase the risk of bank failures and raise the cost of loans. (Cointelegraph)
UK lawmakers question need for 'Britcoin' digital pound
A influential group in the UK Parliament has suggested that the Bank of England should consider whether it really needs a state-supported digital pound, as the risks to the banking system and privacy may outweigh the benefits. The Treasury Committee has urged the central bank to "proceed with caution" and consider measures to reduce the risks associated with "Britcoin", including limiting the amount of digital pounds that consumers can hold. The conclusion drawn by a group of parliament members from major political parties is that "at this stage, it is not yet clear whether the benefits may outweigh these risks."
UK to fine cryptocurrency users for unpaid taxes
The British government on Wednesday urged cryptocurrency users to voluntarily disclose any unpaid capital gains or income tax to avoid penalties, and released guidelines on how to pay these taxes. Tax disclosures should reflect capital gains or income from transaction tokens such as Bitcoin (BTC), non-fungible tokens (NFTs), and utility tokens.
UK Finance Minister: Creating an overly cautious regulatory environment is futile
Newly appointed UK Chancellor of the Exchequer, Bim Afolami, stated that regulatory bodies need to strike a balance between effective supervision and leaving room for innovation and growth. Creating an overly cautious regulatory environment is futile. We need innovation, we need to promote growth and initiative. Additionally, he stated that we should not treat all cryptocurrency companies equally. It is important that we do not view all crypto businesses as being like FTX or Binance.
UK investment fund has been approved for tokenization
On November 24th, according to The Block, UK investment funds have been approved for tokenization. The Investment Association stated in a statement that tokenization of funds is expected to improve efficiency, transparency, and international competitiveness in the investment management field.<br>The report "UK Fund Tokenization - Implementation Blueprint" outlines a model that aims to operate within existing legal and regulatory frameworks, which companies can implement immediately. The model allows FCA-authorized funds to use tokenization for sales and redemption transactions, provided they meet specific criteria, such as investment portfolios consisting only of mainstream investment assets and maintaining traditional valuation and settlement processes.<br>
The British Investment Association allows asset management companies to participate in fund tokenization, but the method is restricted
Investment Association of the UK has released a mid-term report from the Government Asset Management Working Group's technical working group. The report outlines a blueprint that allows asset management companies to participate in fund tokenization now, but with limitations. However, it also provides a roadmap for wider adoption of DLT, enabling asset managers to reap all the benefits of tokenized funds.
UK Finance Minister announces laws to boost digital asset industry
On November 23rd, the UK's digital asset industry received a boost as announced in the Chancellor's Autumn Statement outlining 110 measures for national economic growth. This includes a government initiative aimed at promoting the expansion of the digital asset industry. The UK government will legislate the Digital Securities Sandbox (DSS) to promote the adoption of digital assets in financial markets. The budget statement states: "The government will introduce a legislative framework to establish a DSS and plans to implement a financial market infrastructure sandbox by 2023."
