- British police now have the power to seize, freeze or destroy criminal crypto assets.
- It follows new legislation which comes into force today, April 26, 2024.
- Reforms to help the UK’s national security, Home Secretary James Cleverly has said.
UK law enforcement can now seize, freeze or destroy crypto assets deemed illicit without first having to make an arrest.
This follows the UK Government’s updating of the Proceeds of Crime and Terrorism legislation to allow police and the National Crime Agency (NCA) to investigate and seize any cryptocurrency linked to criminal activity.
A Press release The UK Home Office published on Friday that the new rules will come into force on April 26, 2024. Drug dealers, fraudsters and terrorists, among other organized criminals, are targeted.
With the new powers, police not only have the power to seize cryptocurrencies, but can also transfer seized assets to e-wallets or destroy them if their return to circulation is deemed negative for the public good. Law enforcement officers are also authorized to take control of passwords or USB drives.
“The changes taking effect today will prevent criminals from undermining the legitimate use of crypto, while also supporting the development of crypto as a potential engine of economic growth.”, we read in the press release.
Reforms are ‘bad news for criminals’
According to Home Secretary James Cleverly, the reforms are crucial for the UK’s national security, with criminals never allowed to profit from illicit activities.
British Security Minister Tom Tugendhat added that the revised rules “are bad news for criminals”.
The new UK legislation comes into force after Parliament passed a crime bill in September 2023. The development helped police and the NCA seize millions of dollars worth of illicit cryptocurrencies.
For example, the NCA partnered with the U.S. Drug Enforcement Administration (DEA) in an operation that resulted in the seizure of more than $150 million from a criminal drug enterprise in January of this year .
The UK also seized more than £750,000 ($937,890) from three men who accepted crypto for counterfeit drugs. In 2021, British police seized $250 million in crypto from suspected money launderers.
