Cryptocurrency Could Be More Easily Seized by UK Government

The United Kingdom has updated its legal framework to better combat financial crimes involving digital currencies. Starting from the end of April, UK law enforcement will have the authority to freeze and seize cryptocurrencies associated with illegal activities without a prior conviction. This change is part of the amendments introduced in the Economic Crime and Corporate Transparency Act 2023, as revealed in the Statutory Instrument documentation published on February 29.

These amendments empower the National Crime Agency (NCA) by simplifying the procedure for targeting cryptocurrencies suspected of being used for illicit purposes. Law enforcement can now directly access and take control of digital assets from exchanges and custodian wallet providers. This measure aims to address the challenges posed by the digital nature of cryptocurrencies, which can otherwise facilitate anonymous and rapid transfer of funds for criminal activities.

Additionally, the updated legislation includes provisions for the potential destruction of seized crypto assets. Although the method for this was not specified, a common approach involves removing the tokens from circulation by transferring them to a burn wallet address.

The new law, effective April 26, marks a proactive step by the UK government to ensure the cryptocurrency market is less vulnerable to exploitation for criminal ends.