UK Law Enforcement Agencies Can Now Seize Crypto More Easily as New Rules Take Effect

As a researcher with a background in cryptocurrencies and law enforcement, I’m excited about the new powers that have come into effect in the U.K. to aid in seizing crypto used for criminal activities. These new rules will make it easier for law enforcement agencies to act swiftly and effectively against criminals who use crypto to hide their ill-gotten gains.

The U.K Home Office announced in a press statement that new capabilities for confiscating cryptocurrencies linked to criminal activities became active on Friday.

The Home Office declared that under the latest regulations, law enforcement in the UK no longer need to make an arrest prior to confiscating cryptocurrencies. This change follows the passage of the crime bill through Parliament last year, enabling swifter seizure of digital assets.

“The measure announced in Friday’s press release will facilitate the seizure of assets that are believed to have been illegally acquired, even if the criminals managing these assets successfully conceal their identities or operate from foreign jurisdictions.”

Across the country, law enforcement agencies have deployed crypto tactical advisors, resulting in the seizure of hundreds of millions of pounds‘ worth of cryptocurrencies. In a significant operation led by the National Crime Agency in collaboration with the U.S. Drug Enforcement Administration last January, over $150 million in both cash and cryptocurrency were confiscated during the investigation of an illicit drug enterprise.

“Chief Crown Prosecutor Adrian Foster emphasized in a press release the importance of giving investigators and prosecutors the necessary tools to effectively deal with the evolving nature of crime involving crypto assets. These new measures will significantly enhance our capability to seize, freeze, or eradicate such assets from illicit activities.”

Officers will also be able to transfer the crypto into a wallet controlled by law enforcement agencies. They will be able to destroy crypto assets “if returning it to circulation is not conducive to the public good.”

In simpler terms, the press statement highlighted privacy coins as a category of assets for which confiscated coins could potentially be discarded.

“These reforms will also enhance our national security,” Home Secretary James Cleverly said in the statement. “Terrorist organizations like Daesh are known to raise funds through crypto transactions and these updated powers will enable our agencies to more easily strip them of their assets.”