UK Law Enforcement Gets Expanded Powers to Seize and Destroy Illicit Crypto Assets
Summary:
The UK's National Crime Agency (NCA) and police have been granted new powers to "seize, freeze, and destroy" crypto assets used illegally. The new rules, effective from April 26, allow law enforcement to grab items aiding investigations and to take control of seized illicit cryptocurrency. The laws aim to prevent criminals from exploiting crypto activities and as a result, law enforcement has focused on privacy coins as potentially harmful to public welfare. It was also noted that, following completion of KYC procedures, wallet transactions can be traced. The move is part of global efforts to combat crypto privacy malpractices.
The National Crime Agency (NCA) and law enforcement in the United Kingdom have been granted wider powers to "seize, freeze, and eradicate" cryptocurrencies used for illegal activities. With these new regulations, the police will no longer need to make an arrest before confiscating crypto assets. The U.K. Home Office's press release revealed that the police could also acquire items like passwords or memory sticks that can assist in investigations.
Furthermore, the U.K. law enforcement now has the power to eradicate a crypto asset if its re-circulation is considered harmful to the public welfare. The new laws, effective from April 26, permit the police to transfer confiscated illegal cryptocurrency into wallets they control. In addition, victims of crimes can request to recover funds from their crypto accounts.
Home Secretary James Cleverly emphasized the need to prevent criminals from gaining financial benefit from their unlawful activities, with illicit crypto fundraising by criminal syndicates being the primary reason for these new police powers. Cleverly stated, "These reforms will enhance our national security by dealing with terrorist organizations such as Daesh, known for raising funds through crypto transaction."
Last year, the U.K. Parliament passed a crime bill that simplifies the seizure of cryptocurrency. This prompted the introduction of the new laws. The U.K. press release particularly pointed to privacy coins as being "detrimental to the public good." The press release warns that even though wallet addresses are anonymous, once tied to a user's identity through procedures like KYC, all transactions made by the wallet can be easily traced.
The release recognizes that cryptocurrencies and NFTs are often exploited by drug dealers and fraudsters. The new laws are designed to avert criminals from manipulating crypto for illegal purposes and simultaneously support crypto’s potential to foster economic growth.
Law enforcement worldwide have been stepping up efforts to combat crypto privacy activities. For instance, the U.S. authorities recently detained the founders of Bitcoin mixer Samourai Wallet on suspicion of conspiracy to launder money.
Published At
4/26/2024 3:42:00 PM
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