A new UK offence that took effect on July 17 has created significant legal exposure for crypto firms with ties to the country, even though the legislation does not explicitly mention cryptocurrency. The rule places a premium on the timing of wallet identification, effectively requiring UK-linked companies to reconstruct records of what they knew about specific wallets and when they knew it. Delays in identifying wallets could now expose firms to criminal liability, with penalties reportedly reaching up to 14 years. The absence of direct references to crypto in the statute adds uncertainty, leaving firms to interpret how the offence applies to their operations. As a result, compliance teams may need to review historical data and internal processes to assess potential risk and demonstrate that identification obligations were met in a timely manner.
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