UK Law Empowers Crypto Asset Seizures

The UK government is amending laws to allow law enforcement to freeze crypto assets involved in crimes without a conviction.

At the end of April, UK law enforcement officials will be able to freeze crypto assets used in crimes without requiring a conviction, according to newly disclosed Statutory Instrument material from the UK government.

Updates to the Economic Crime and Corporate Transparency Act 2023 were detailed in a document published on February 29. These amendments give the National Crime Agency more authority to seize cryptocurrency assets it suspects are associated with questionable illegal activities, bypassing lengthy legal processes.

Also, exchanges and custodial wallet providers would be able to hand over crypto assets to the authorities. Should the need arise, they will also be able to destroy digital assets.

The most popular method of destroying cryptocurrency tokens is sending them to a burn wallet address and then burning them, but the technique was not specified.

As on April 26, the law will be in full force.

The authorities’ capacity to combat the use of cryptocurrency in cybercrime, scams, and drug trafficking is supposed to be enhanced by the recently passed legislation, according to media reports from September 2022.

Since certain criminals may be able to evade punishment by staying abroad, the Economic Crime and Corporate Transparency Bill includes a clause that permits the seizure of cryptocurrency assets without first making an arrest.

Authorities in the UK may be “ill-equipped to handle crypto crimes against UK residents,” according to a British citizen who lost about $46,000 in crypto fraud.

He asserted that the agency should have done more to recover the money that had been stolen from him.

At the same time, new regulations governing stablecoins and crypto staking will be passed by the UK government within the next six months, according to recent statements.

As revealed by Bim Afolami, the government’s economic secretary, during a Coinbase-hosted crypto event in London on February 19, the goal is to finish regulation before next year’s election, which is scheduled for no later than January 28, 2025.

“We’re very clear that we want to get these things done as soon as possible. And I think over the next six months, those things are doable.”