The United Kingdom government has recently issued a new legal document that states that law enforcement authorities in the country will have the ability to freeze cryptocurrency assets used in criminal activities without the need for a conviction. This development, which will come into effect at the end of April, is a part of the amendments made to the Economic Crime and Corporate Transparency Act 2023. The changes expand the powers of the National Crime Agency, allowing them to confiscate and seize suspected crypto assets that are linked to illicit activities, without having to go through lengthy legal procedures. Furthermore, authorities will now be able to directly retrieve crypto assets from exchanges and custodian wallet providers, and they will also have the option to destroy these assets if necessary.
Although the document does not detail the specific process for asset destruction, the most common method involves burning the crypto tokens. This is done by transferring the tokens to a burn wallet address, effectively removing them from circulation. The new legislation is set to take effect on April 26.
It was previously reported by Cointelegraph in September 2022 that the purpose of this legislation is to enhance the authorities’ ability to crack down on the use of cryptocurrencies in various criminal activities, including cybercrime, scams, and drug trafficking.
One of the key provisions of the Economic Crime and Corporate Transparency Bill allows for the recovery of crypto assets used in crimes without the need for an arrest, as some individuals involved may evade conviction by staying overseas. However, a British national who fell victim to crypto fraud and lost around $46,000 to scammers expressed concerns about the government’s ability to handle crypto crimes against UK residents. He claimed that the agency failed to take the necessary measures to retrieve his stolen funds.
Meanwhile, the UK government is also planning to pass new laws to regulate stablecoins and crypto staking within the next six months. Economic Secretary to the Treasury Bim Afolami revealed during a crypto event hosted by Coinbase in London that the government aims to complete the regulation process before the next election, which will take place no later than January 28, 2025.
In other news, the owner of a seven-trait CryptoPunk Seedphrase has partnered with Sotheby’s, a renowned auction house, in the field of NFT collection.