On April 26, newly enacted laws that empower law enforcement agencies in the United Kingdom to “seize, freeze and destroy” crypto assets came into effect. This legislative action directly responds to the escalating trend of illicit cryptocurrency transactions within the UK.
New UK Law Empowers Authorities to Seize Crypto Assets
The new measures aim to undermine the financial networks of organised crime groups, which are increasingly using cryptocurrency to launder money.
These legislative amendments are part of the United Kingdom's overall policy to combat cybercrime and manage the risks and rewards of digital assets in the economy.
The modification to the UK's proceeds of crime and anti-terrorism laws removes the requirement for an arrest before seizing cryptocurrency. The tweak is aimed at offenders who work anonymously or from abroad.
Law enforcement authorities now have the right to take anything such as written passwords or memory sticks that could aid criminal investigations, as well as move unlawful digital assets to government-controlled electronic wallets, essentially preventing criminal access.
New Measures Target Cryptocurrency Crime and Promote National Security
Authorities now have the ability to destroy specific digital assets, particularly privacy coins, which guarantee high anonymity and are widely utilised in criminal activities. This measure keeps these assets from reentering circulation. Additionally, crime victims can now request the release of funds kept in cryptocurrency accounts.
Home Secretary, James Cleverly, declared:
"We are making it much easier for law enforcement to stay on top of a new and developing threat by ensuring that criminals can never benefit from breaking the law."
He stated that the measures would improve national security and promote economic growth through the legitimate use of cryptocurrency.
In recent operations, the NCA and the US Drug Enforcement Administration disrupted a multimillion-dollar drug network, capturing $150 million in cash and cryptocurrency. Other successful cases include the conviction of persons who used cryptocurrency to sell counterfeit drugs on the dark web and VAT fraud relying on non-fungible tokens (NFTs).
Adrian Foster, Chief Crown Prosecutor, emphasised the significance of adjusting to technological advances.
"Investigators and prosecutors must have the capability and agility to keep pace with the changing nature of crime."