- New U.K. legislation allows police to seize cryptocurrencies without an arrest to combat crime.
- Law enforcement can now destroy crypto assets that are not conducive to public good.
- Reforms enhance tools to strip terrorist groups like Daesh of crypto-funded assets.
New legislation that empowers law enforcement to confiscate cryptocurrencies involved in criminal activities took effect on Friday, according to an announcement by the U.K. Home Office. Under the new regulations, police officers in the nation are permitted to seize crypto assets without first making an arrest.
These changes follow the passage of a crime bill by the U.K. Parliament last year, which facilitates the quicker seizure of cryptocurrencies. The Home Office stated in a press release on Friday that this enhancement will streamline the process of capturing assets known to be criminally acquired, even in cases where the criminals maintain their anonymity or are located abroad.
“This will make it easier to take assets which are known to have been criminally obtained, even if sophisticated criminals are able to protect their anonymity or are based overseas.”
U.K Home Office
Law enforcement has deployed cryptocurrency tactical advisors throughout the country, resulting in the seizure of hundreds of millions of pounds in crypto assets. In January, a collaborative investigation between the U.K. Enacts New Law Allowing Police To Seize Cryptocurrencies Without Arrest into a drug operation led to the confiscation of $150 million in cash and cryptocurrencies.
Chief Crown Prosecutor Adrian Foster emphasized in the press release the importance of investigators and prosecutors having the tools and flexibility to adapt to the evolving landscape of crime. He noted that these new measures will significantly enhance their capacity to control, freeze, or seize crypto assets derived from illegal activities.
Officers now have the authority to transfer seized cryptocurrencies into wallets controlled by law enforcement agencies. They also have the capability to destroy crypto assets when reintroducing them into circulation is deemed detrimental to public welfare. The press release highlighted privacy coins as a type of asset that might be destroyed upon seizure.
Home Secretary James Cleverly noted in the statement that these reforms will bolster national security. He pointed out that terrorist organizations, such as Daesh, often finance their operations through cryptocurrency transactions, and the updated powers will aid agencies in more effectively depriving them of their assets.
