UK Expands Powers to Seize Crypto in New Crime Bill

Tougher Crypto Seizure Laws

The UK government has introduced a new bill aimed at cracking down on crypto-related crimes. This legislation expands law enforcement’s power to seize and destroy digital assets linked to illegal activity.

Key points of the bill:

Enhanced confiscation powers – The Crown Court can now issue confiscation orders specifically for crypto assets.
Streamlined asset recovery – Stolen funds can be recovered and returned to victims more efficiently.
Destruction guidelines – If assets need to be destroyed, their value will be assessed based on market prices at the time.
Complementary to previous laws – Builds on the 2023 Economic Crime and Corporate Transparency Act (EECTA), which gave authorities power to freeze and seize illicit crypto.

Why This Matters

Crypto-related crime is rising in the UK, with annual illicit transactions estimated between $1.7 billion and $5.1 billion. Law enforcement is facing increasingly complex challenges, including:

Violent Home Invasions

A group of seven British men was sentenced to a total of 76 years in January for kidnapping and torturing a man to steal his crypto.
In 2020, a victim in Scotland was forced at machete-point to transfer their digital assets.

Fraud and Money Laundering

In 2017, criminals exploited a loophole in the Australian exchange CoinSpot to withdraw large sums undetected.
A gang convicted of money laundering was ordered to repay $30 million in stolen funds.

With these new measures, the UK aims to curb crypto crime and prevent criminals from profiting from their illegal activities.