United Kingdom: The UK government has given the National Crime Agency (NCA) and the police more powers to seize, freeze and destroy criminal crypto assets.
Organised lawbreakers such as drug dealers, fraudsters, and terrorists are growingly operating crypto investments to launder the profits of their illegal activities and extend funds. According to the National Assessment Centre of the NCA, it is assessed that illegal crypto dealings were correlated to the UK reaching at least £1.2 billion in 2021, and possibly even higher.
To combat this growing danger, the government revamped the proceeds of offence and terror ruling, which now makes it more comfortable for UK law enforcement to effectively scrutinise, capture and retrieve illegal crypto assets.
Police officials in the UK will now hold the power to seize cryptocurrency from suspects without holding to make an arrest first. This will make it easier to impound assets that are known to be obtained through criminal activity, even if the people involved can save their anonymity or are located overseas.
In addition to this, officers can also seize items like written passwords or memory sticks, which could be used to aid an inquiry. Illicit crypto assets can be transferred to an electronic wallet controlled by law enforcement, thereby preventing access to the assets by criminals. Law enforcement officials will also enclose the power to eradicate a crypto asset if returning it to circulation is not in the interest of the public good. Furthermore, victims can apply to own funds in their cryptoasset account released to them.
Home Secretary James Cleverly said that, “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. These reforms will also enhance our national security. Terrorist organisations like Daesh are known to raise funds through crypto transactions and these updated powers will enable our agencies to more easily strip them of their assets.”
Tom Tugendhat, the UK Security Minister, stated that, “These reforms are bad news for criminals, they send a clear message we will never let crime pay. Our agencies have already shown they have the expertise to target sophisticated criminals and deprive them of their ill-gotten gains. These new measures will help them take the fight to the next level.”
Law enforcement officers seized millions of dollars worth of cash and crypto in various cases involving drug trafficking, counterfeit drugs, and VAT fraud. Crypto is also used to fund terror groups, leading to the arrest and imprisonment of offenders.
Adrian Searle, Director of the National Economic Crime Centre, expressed that, “Criminals are increasingly using crypto assets to conceal and move the proceeds of crime at scale and pace, pay for other criminal services and as a means to defraud victims. These new powers are very welcome and will enhance law enforcement’s ability to restrain, recover and destroy crypto assets if required. They will enable a more effective pursuit of criminals and ultimately deny them the financial gain they crave.”
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