UK Government Grants Enhanced Powers to Seize Cryptocurrencies Linked to Criminal Activities
On April 26, the UK government implemented new laws granting the National Crime Agency (NCA) and police increased powers to seize, freeze, and destroy digital assets associated with criminal activities. These measures are aimed at disrupting the financial networks of organized crime groups that are increasingly using cryptocurrencies to launder money.
The updated laws are part of the UK’s broader strategy to combat cybercrime and manage the risks and benefits of digital assets in the economy. One significant change is the elimination of the requirement for an arrest prior to seizing cryptocurrency, specifically targeting criminals who operate anonymously or from overseas.
Law enforcement now has the authority to seize items like written passwords or memory sticks that could assist in criminal investigations. They can also transfer illicit digital assets to government-controlled electronic wallets, effectively preventing criminals from accessing them. Additionally, authorities can now destroy certain digital assets, such as privacy coins, commonly used in illegal transactions to prevent them from re-entering circulation.
Home Secretary James Cleverly stated, “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 emphasized that these reforms will enhance national security and support economic growth through legitimate uses of cryptocurrency.
Recent operations by the NCA and the United States Drug Enforcement Administration have resulted in the dismantling of a multi-million-dollar drug network, with $150 million in cash and cryptocurrencies seized. Other successful cases include convicting individuals using cryptocurrency for counterfeit drug sales on the dark web and VAT fraud involving non-fungible tokens (NFTs).
Adrian Foster, Chief Crown Prosecutor, stressed the importance of adapting to technological advances, stating, “Investigators and prosecutors must have the capability and agility to keep pace with the changing nature of crime.”
