The Crime and Corruption Commission (CCC), a law enforcement agency in Queensland, Australia, has identified certain loopholes in state laws that promote the criminal use of digital assets.
To address these legal deficiencies, the agency has proposed a modernization of Queensland’s asset confiscation system.
The CCC has raised concerns about the effectiveness of Queensland’s Criminal Proceeds Confiscation Act 2002 (CPCA) in confiscating cryptocurrencies involved in organized crime, such as money laundering.
The commission has called for a significant reform of the Act, with a focus on achieving seven priority outcomes, three of which directly relate to the seizure of digital assets. It stated:
“The lack of specific language related to cryptocurrencies, crypto assets, or digital assets in the CPCA is the main reason for the gaps in Queensland’s legislative framework.”
Highlighting the importance of adapting the CPCA to the evolving criminal landscape, the commission added:
“The inability to seize digital assets hampers Queensland’s ability to gather evidence, determine ownership of a digital asset, and facilitate the storage or transfer of digital assets, among other things.”
The commission has recommended reforms that include defining “digital assets” and incorporating them into money laundering laws, converting seized assets into stable currencies during legal proceedings, and implementing automatic forfeitures.
In a related development, Alan Kirkland, commissioner of the Australian Securities and Investments Commission (ASIC), unveiled a strategy in March to foster responsible development of financial innovation.
Kirkland highlighted the need to address the “regulatory trilemma” in financial innovations, which involves ensuring consumer protection, maintaining market integrity, and promoting financial innovation.
Kirkland believes that ASIC’s approach to innovation and effective regulation can mitigate associated risks and encourage the widespread adoption of digital assets.
Source: ASIC Media
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