UK Proposes Law To Seize Crypto Assets, Is Crypto Going Down in London?

The UK government plans to propose a law that could mitigate the risks posed by crypto-assets and help combat economic crime. This movement has been made due to the rising crimes in the country. Since the Covid-19 pandemic, frauds and online scams involving cryptocurrency have drastically increased.

UK government told parliament’s Treasury Select Committee,

In particular, (we propose) the creation of a civil forfeiture power which would mitigate the risk posed by those that cannot be prosecuted but use their funds to further criminality.

Meanwhile, the government will work closely with social media platforms to strengthen its reach in its fight against scams and fraudulent acts that involve digital assets. In detail, the British government has already backed the idea of mandating online platforms such as Google and Facebook to tackle frauds and threats to financial products proactively.

A government representative stated,

We are working closely with technology companies and partners in law enforcement and civil society to consider every possible option to support victims of online fraud and to mitigate the harm that they have experienced.

On the other hand, as countries around the world continue to create laws about crypto assets, the whole crypto market continues to bleed. Specifically, the market capitalization of the whole crypto industry has kept declining to almost -3% in the past 24-hours. This resulted in the industry recording an estimated market cap amounting to $1.8 trillion.

Moreover, Bitcoin – the king of crypto assets – keeps its number one position in terms of market cap holdings. It is traded below $40k with a 24-hour trading volume of more than $24 billion.