The Treasury Committee, which is formed from a cross-party group of MPs, said that swift seizure of cryptoassets from criminals could help to dampen further illegal activities as the proceeds of crime are increasingly held in cryptocurrency wallets.
The Financial Conduct Authority (FCA) and the Treasury submitted responses to the Committee’s Economic Crime report that was published earlier in the year. They said that cryptoasset firms could be made to register for anti-money-laundering purposes or face sanctions.
“If, as we recommend, the government renews the Economic Crime Plan in 2022, it should consider instituting measures specifically to protect consumers from fraud and scams relating to cryptoassets,” the FCA said.
The Treasury also said that greater efforts to tackle money laundering through cryptoassets could help to bolster confidence in the UK as a safe place to start and grow a business in the burgeoning sector.
In response to other suggestions...