The UK government passed new laws on April 26 that give the National Crime Agency (NCA) and police more powers to seize, freeze and destroy digital assets linked to criminal activity.
The new measures aim to disrupt the financial networks of organized crime groups that are increasingly exploiting cryptocurrencies to launder money
. These legal changes are part of Britain’s wider strategy to tackle cybercrime and manage the risks and benefits of digital assets in the economy.
The update to the UK’s Proceeds of Crime and Anti-Terrorism laws eliminates the requirement for an arrest prior to seizing crypto. The adjustment is aimed at criminals who maintain their anonymity or operate from abroad.
Law enforcement officers now have the power to seize items such as written passwords or memory sticks that could aid criminal investigations and transfer illegal digital assets to government-controlled electronic wallets, effectively blocking access to criminals.
In addition, authorities now have the power to destroy certain digital assets, especially privacy coins, which offer high anonymity and are often used in illegal transactions. This measure prevents these assets from coming back into circulation. Additionally, crime victims can now request the release of funds held in crypto accounts.
Home Secretary James Cleverly said:
“We’re making it much easier for law enforcement to stay informed about a new and evolving threat by ensuring criminals can never profit from breaking the law.”
He noted that the reforms would enhance national security and support economic growth through legitimate uses of crypto.
In recent operations, the NCA and the US Drug Enforcement Administration dismantled a multi-million dollar drug network, seizing US$150 million in cash and cryptocurrencies. Other successful cases include the conviction of individuals using crypto to sell counterfeit medicines on the dark web and VAT fraud involving non-fungible tokens (NFTs).
Adrian Foster, chief prosecutor for the Crown, emphasized the importance of adapting to technological progress”
“Investigators and prosecutors must have the ability and flexibility to keep pace with the changing nature of crime.”