- UK police now have the power to confiscate, freeze or destroy cryptocurrencies for criminal purposes.
- This follows new legislation that comes into effect today, April 26, 2024.
- Home Secretary James Cleverly said reforms were needed to help Britain’s national security.
Law enforcement officers in the UK can now seize, freeze or destroy cryptocurrency assets they deem illegal without having to arrest them first.
This comes after the UK government updated its Proceeds of Crime and Terrorism Act to give police and the National Crime Agency (NCA) powers to investigate and seize any cryptocurrency linked to criminal activity.
The new rules will come into effect on April 26, 2024, according to a press release issued by the Home Office on Friday. The targets are drug dealers, con artists, terrorists, and other organized criminals.
The new powers will allow police to not only seize cryptocurrencies, but also transfer seized assets to e-wallets or destroy them if their return to circulation is deemed negative in the public interest. Law enforcement officers may also have control of passwords or memory sticks.
“The changes taking effect today will prevent criminals from undermining the legitimate use of cryptocurrencies, while also supporting the development of cryptocurrencies as potential drivers of economic growth.” read part of the press release.
“Bad news for criminals” reform
Home Secretary James Cleverly said the reforms were vital to Britain’s national security and ensured criminals were not allowed to profit from illegal activity.
UK Security Secretary Tom Tugendhat added that the revised rules were “bad news for criminals”.
The UK’s new laws will come into effect in September 2023, after parliament passes relevant crime legislation. This development has helped police and the NCA seize millions of dollars worth of illegal cryptocurrencies.
For example, the NCA worked with the Drug Enforcement Agency (DEA) to seize more than $150 million from criminal drug enterprises in January of this year.
Britain also seized more than £750,000 ($937,890) from three men who received cryptocurrency in exchange for counterfeit drugs. In 2021, British police seized $250 million in cryptocurrency on suspicion of money laundering.