British Prime Minister Boris Johnson’s Plans For Cryptocurrency
[TL; DR]
It is crystal clear that Boris Johnson's government has a strict approach to the cryptocurrency ecosystem.
The plans of the UK government are geared towards zero-tolerance for criminal-related crypto activities.
The government recently introduced the Economic Crime Bill.
The bill is a regulation that will make the UK government a regulator of the British crypto market.
The new Economic crime legislation will empower law enforcement agents to seize crypto tokens traced to illegal proceeds.
Most importantly, crypto wallets and individuals who engage in terrorism financing and money laundering will be sanctioned.
The Boris leg Government is also looking toward sanctioning Russians and the government entities who have connections with President Vladimir Putin of Russia.
The clampdown on these Russians will help weaken the country's power over Ukraine and lessen the audacity of the invasion.
The UK government is also planning to launch a Euro-backed stablecoin.
The UK Treasury said stablecoins would be regulated and equal to the UK fiat currency.
Experts are applauding the various plans of Boris Johnson towards curtailing the use of cryptocurrency in criminal activities.
Keywords: Britain, United Kingdom, Government, Boris Johnson, cryptocurrency, legislation, sanction.
[Full Article]
Every government has its peculiarities and area of interest. These peculiarities and areas of interest will shape their activities, Government policies, plans, projects, and regulations.
Two successive governments might have different plans and policies for a particular project. It mostly depends on what the key actors or stakeholders of such a Government prioritize.
For a country like the United Kingdom, the entire world is keen on identifying what a particular Government prioritizes and the policies cum regulations made in that direction. It is on this note that we are examining the plans of Boris Johnson, the British Prime Minister, for cryptocurrency.
UK Prime Minister’s Plan For Cryptocurrency
Image: Sky News
Undoubtedly, the British government, under the leadership of Boris Johnson, who doubles as a Conservative leader, has a strict approach to the cryptocurrency industry.
Over the years, the plans, policies, and legislation promulgated by the UK Government (precisely under Boris Johnson) have shown that the administration has zero tolerance for crypto-related criminal activities.
Similarly, Boris’ administration has been monitoring the cryptocurrency ecosystem and plans to introduce new economic legislation to investigate illicit operations funded by digital assets and confiscate such assets accordingly.
Some of these plans include;
The Economic Crime Bill
The new economic crime legislation is a bill that will empower law enforcement agents to confiscate and recover crypto tokens “easily and quickly” should such tokens be deployed for criminal activities.
Giving support to the bill and shedding more light on it, Prince Charles, the Heir to the throne and the eldest son of Queen Elizabeth, said, “ A bill will be brought forward to further strengthen powers to tackle illicit finance, reduce economic crime and help businesses grow.
Experts opine that this bill is necessary and comes at a period when terrorism financing and money laundering activities are on the rise, largely because cryptocurrencies fund them.
Should the legislation be passed into law by the British parliament, crypto funding of terrorism and money laundering will drastically reduce in the United Kingdom and across the globe.
The Russian Sanction
Image: YouTube
In March, the British government sanctioned several Russian individuals and Government entities. The financial sanction was due to their connection and relationship with President Vladimir Putin of Russia on issues bordering on his special military operation and alleged invasion of Ukraine.
The sanction is contained in the Economic Crime Bill and is geared towards forcing dirty money out of Britain. The sanction will also ensure those associates of Vladimir are not benefiting from the United Kingdom’s economy.
The passage of this bill is expected to be speedy and will be implemented immediately. The clampdown and sanction of Russians who are associates of Vladimir Putin are expected to reduce the financial power being deployed by Russia in the ongoing war with Ukraine.
Experts opine that these associates will be forced to intercede on Ukraine's behalf and plead with President Vladimir Putin of Russia to end the alleged invasion of Ukraine when the British government begins the clampdown.
Stablecoins As Means Of Payment In The United Kingdom
Image: BitCourier
In April 2022, the United Kingdom Government unveiled plans to allow people to make cryptocurrency payments. The UK Government wants to bring cryptocurrency into the mainstream by unveiling plans that would enable stablecoins to be used for payment in the UK.
According to the UK Treasury, Stablecoins will be regulated and equivalent to normal fiat when used for payment and transactions in the UK. The treasury also noted that stablecoins are not as volatile as Bitcoin's and can only move in value if the traditional currency they are pegged with also moves in value.
The UK Government wants the pound-linked stable coin to be strong and go up in price against the dollar when pounds sterling gains on the international market.
The launch of the stablecoin and the legal backing that will be reposed in it is one of the plans by the British government to be at the forefront of technology and innovation.
According to the treasury, “The chancellor, in his Mansion House speech in July 2021, has set out his vision for the future of the financial services sector, which included a plan to ensure that the UK remains at the forefront of technology and innovation.”
Conclusion
There is no doubt that the Boris Johnson-led UK government has set the motion in place to regulate the cryptocurrency market. The legislation is one of those steps to address the illegal activities that have characterized the crypto ecosystem.
In another turn, the government is set to legalize using Stablecoin for payment and transactions across Britain. There are expectations that Pounds Sterling pegged stablecoins will be publicly launched.
Finally, the legislation by Boris Johnson's led government is expected to reduce terrorism financing and money laundering in the UK and worldwide.
Author: Valentine. A, Gate.io Researcher
This article represents only the researcher's views and does not constitute investment suggestions.
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