Regulation
UK law enforcement gets information powers to seize crypto
The UK has introduced new measures to strengthen law enforcement powers to seize cryptocurrencies associated with criminal activity.
THE The UK Home Office announced on Friday April 26 that these new rules, which result from a crime bill passed by parliament last year, came into force. Under the new regulations, police officers in the UK will no longer need to arrest confiscated crypto assets.
Wider powers are now being given to the National Crime Agency and the police to seize, freeze and destroy crypto assets used by criminals.
This change aims to streamline the process of seizing criminally obtained assets, even when sophisticated criminals manage to conceal their identities or operate from abroad. The UK police have already deployed tactical crypto advisors across the country and have successfully captured the value of crypto. hundreds of millions of pounds.
In one notable case in January, the country’s National Crime Agency collaborated with the U.S. Drug Enforcement Administration to investigate a drug enterprise, resulting in the seizure of $150 million in cash and crypto. Chief Crown Prosecutor Adrian Foster highlighted the importance of these new measures to enable investigators and prosecutors to keep pace with changing crime rates.
UK crypto laws set to tighten
Seized crypto assets will be transferred to wallets controlled by law enforcement, and agents will have the power to destroy these assets if their reintroduction into circulation is deemed detrimental to the public good. Privacy tokens, in particular, have been cited as an example of the types of assets that can be destroyed after a seizure.
Home Secretary James Cleverly highlighted the importance of these reforms to strengthen national security, pointing out that terrorist organizations like ISIS are known to exploit crypto transactions for fundraising purposes. The updated authorities will allow agencies to more effectively strip these groups of their assets.
This development follows recent reports that UK Treasury plans to introduce regulatory framework for cryptocurrencies and stablecoins by July 2024. The UK has been working hard on crypto regulation for quite a while and at the end of October 2023 it released its final guidelines for the cryptocurrency sectorwith the intention of enacting legislation in stages starting this year.