This is why Britain can now confiscate and destroy your cryptocurrency

On April 26, newly enacted laws came into effect giving law enforcement agencies in the United Kingdom the power to ‘seize, freeze and destroy’ crypto assets.

This legislative action responds directly to the escalating trend of illegal cryptocurrency transactions within the United Kingdom.

Britain can seize crypto without arrest

In recent years, organized criminal entities such as drug traffickers and terrorists have increasingly exploited cryptocurrencies for money laundering. The National Crime Agency’s National Assessment reported a rise in illegal crypto transactions in Britain to £1.2 billion in 2021.

To counter this trend, the Ministry of the Interior has announced regulatory changes. The new regulations allow law enforcement agencies to seize cryptocurrency assets without having to make an arrest first. This change follows the passage of a crime bill by the British Parliament last year, which accelerated the process of crypto seizure.

“Criminals should never be able to profit from breaking the law. That’s why we’re making it much easier for law enforcement agencies to stay informed about a new and evolving threat,” said Home Secretary James Cleverly.

The new guidelines give authorities the power to seize items such as written passwords or memory sticks that could aid criminal investigations and transfer illegal cryptos to government-controlled wallets, effectively cutting off access to criminals.

Read more: Crypto regulation: what are the pros and cons?

Additionally, authorities can now destroy specific digital assets, especially privacy coins. Authorities argued that these assets provide increased anonymity and are often used in illegal transactions. This measure is intended to prevent these assets from coming back into circulation.

Additionally, the legislation includes provisions that allow victims of crypto-related crimes to petition for the release of their funds.

“These new powers are very welcome and will enhance law enforcement’s ability to contain, recover and destroy crypto assets, if necessary. They will enable more effective pursuit of criminals and ultimately deny them the financial gain they crave,” Adrian Searle, director of the National Economic Crime Center, added.

Recent joint operations between the NCA and the US Drug Enforcement Administration resulted in the dismantling of a multi-million dollar drug network, with the seizure of US$150 million in cash and cryptocurrencies. Notable successes include the prosecution of individuals involved in the sale of counterfeit medicines via cryptocurrency on the dark web and value added tax (VAT) fraud involving non-fungible tokens (NFTs).