UK Government Plans to Give Courts New Powers to Track Down Crypto Fraud

by Nicholas Otieno
  • The UK government continues cracking down on crypto.
  • The effort aimed to protect consumers from fraud they may not be familiar with.
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The UK government announced on Thursday that it has introduced new rules designed to address cryptocurrency fraud.

While presenting a speech at a legal conference, Sir Geoffrey Vos, the Head of Civil Justice in The Court System of England and Wales, disclosed that the Civil Justice Council (CJC), a body that writes the rules for civil courts in the UK, is planning to update its laws to make it easier for courts to trace cryptocurrencies and work on fraud cases involving such assets.

The new rules that the council considers include laws that would allow courts to order third parties, like crypto exchanges, to disclose documents associating individuals who have been proven to be involved in fraud cases, according to the Law Society Gazette.

Additionally, the new rules seek to expand cases where legal cases can be addressed outside the jurisdiction.

“It is that obstacle that has impeded many sets of proceedings aimed at tracing the proceeds of crypto fraud,” Vos stated.

“The blockchain is now at a stage in its development equivalent to where the internet was in or around 1995. The internet was unstoppable in 1995 and blockchain technology is unstoppable now. It will become ubiquitous in all major industrial and financial sectors, simply because it allows for the immutable recording of data, thereby reducing friction in commercial and consumer transactions and obliterating the scope for dispute as to what has occurred,” Vos elaborated.

Crypto Fraud Soars

The UK government has been pressing urgent calls to tackle Britain's 'fraud epidemic’. As things stand, cryptocurrencies are unregulated in the United Kingdom. In an industry rife with scams, fraud and unchecked greed, the U.K. government has been bold to step in and do something about the menace.

Last month, the Treasury of the United Kingdom announced plans to strengthen rules on deceptive advertisements related to digital currencies. The move by the authority came after an increase of misleading crypto ads promising high returns has been reported in the country.

Cryptocurrencies have become mainstream nowadays. Recently, the Financial Conduct Authority (FCA) reported an increase of 400,000 investors since March 2020, and 2.3 million UK adults currently hold crypto assets. The trend has brought opportunities for criminals who target crypto assets or use cryptocurrencies to dissipate assets from any fraud. The FCA has continued to collaborate with Chainalysis and other organizations to help support investigation and asset recovery services.

The UK government announced on Thursday that it has introduced new rules designed to address cryptocurrency fraud.

While presenting a speech at a legal conference, Sir Geoffrey Vos, the Head of Civil Justice in The Court System of England and Wales, disclosed that the Civil Justice Council (CJC), a body that writes the rules for civil courts in the UK, is planning to update its laws to make it easier for courts to trace cryptocurrencies and work on fraud cases involving such assets.

The new rules that the council considers include laws that would allow courts to order third parties, like crypto exchanges, to disclose documents associating individuals who have been proven to be involved in fraud cases, according to the Law Society Gazette.

Additionally, the new rules seek to expand cases where legal cases can be addressed outside the jurisdiction.

“It is that obstacle that has impeded many sets of proceedings aimed at tracing the proceeds of crypto fraud,” Vos stated.

“The blockchain is now at a stage in its development equivalent to where the internet was in or around 1995. The internet was unstoppable in 1995 and blockchain technology is unstoppable now. It will become ubiquitous in all major industrial and financial sectors, simply because it allows for the immutable recording of data, thereby reducing friction in commercial and consumer transactions and obliterating the scope for dispute as to what has occurred,” Vos elaborated.

Crypto Fraud Soars

The UK government has been pressing urgent calls to tackle Britain's 'fraud epidemic’. As things stand, cryptocurrencies are unregulated in the United Kingdom. In an industry rife with scams, fraud and unchecked greed, the U.K. government has been bold to step in and do something about the menace.

Last month, the Treasury of the United Kingdom announced plans to strengthen rules on deceptive advertisements related to digital currencies. The move by the authority came after an increase of misleading crypto ads promising high returns has been reported in the country.

Cryptocurrencies have become mainstream nowadays. Recently, the Financial Conduct Authority (FCA) reported an increase of 400,000 investors since March 2020, and 2.3 million UK adults currently hold crypto assets. The trend has brought opportunities for criminals who target crypto assets or use cryptocurrencies to dissipate assets from any fraud. The FCA has continued to collaborate with Chainalysis and other organizations to help support investigation and asset recovery services.

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