The United Kingdom (UK) has introduced new legislation granting enhanced powers to the National Crime Agency (NCA) and police to seize, freeze, and destroy cryptocurrencies used for illicit activities.
According to the press release, the proceeds came into force today. The updated proceeds aim to bolster the ability of UK law enforcement to effectively investigate, seize, and recover cryptocurrencies linked to organized crime, drug trafficking, fraud, and terrorism.
Key points:
- The NCA estimates that illicit crypto transactions linked to the UK reached at least £1.2 billion in 2021, with the actual figure likely being significantly higher.
- The new legislation eliminates the requirement for police to make an arrest before seizing crypto from a suspect.
- Law enforcement can now seize materials that could be useful in probes, like written passwords or memory sticks.
- Officers will have the ability to transfer illegal cryptocurrencies into a law enforcement-controlled electronic wallet.
- UK law enforcement will have the authority to destroy a crypto asset if returning it to circulation is deemed not conducive to the public good.
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Home Secretary James Cleverly emphasized the importance of these reforms in preventing criminals from benefiting from their illegal activities, stating, “Criminals should never be able to benefit from breaking the law, which is why we are making it much easier for law enforcement to stay on top of a new and developing threat.”
New crypto legislation comes after numerous successful UK investigations
The introduction of these new powers follows a series of successful investigations by UK law enforcement agencies involving the seizure of cryptocurrencies.
In January 2024, the NCA collaborated with the United States Drug Enforcement Administration to investigate a multi-million-dollar drug enterprise. Also, this resulted in the seizure of $150 million in cash and crypto.
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In addition, HMRC seized three non-fungible tokens (NFTs) as part of a VAT fraud investigation, and three people were detained on suspicion of trying to defraud the agency of £1.4 million.
