The UK government has issued Statutory Instrument documentation announcing that law enforcement authorities will be able to freeze cryptocurrency assets used in criminal activities without requiring a conviction starting from the end of April. The updated Economic Crime and Corporate Transparency Act 2023 grants the National Crime Agency expanded powers to confiscate and seize crypto assets suspected to be linked to illicit activities, without the need for lengthy legal procedures. Authorities will also have the ability to retrieve crypto assets directly from exchanges and custodian wallet providers, and can choose to destroy the assets if necessary. Although the process for asset destruction was not specified, burning the tokens by transferring them to a burn wallet address is a common method. The law will come into effect on April 26. The legislation was passed to enhance authorities’ capabilities in combating crimes involving cryptocurrencies such as cybercrime, scams, and drug trafficking. However, a British victim of crypto fraud criticized the authorities for their inability to effectively handle crypto crimes against UK residents, citing the agency’s failure to recover his stolen funds. In addition, the UK government recently expressed its intention to implement new regulations for stablecoins and crypto staking within the next six months. Economic Secretary to the Treasury Bim Afolami revealed during a crypto event that the government aims to complete the regulatory framework before the next election, which must occur no later than January 28, 2025.
Crypto seizure restrictions in the UK set to diminish in the near future