The National Crime Agency (NCA) and police in the UK have been granted expanded powers to seize and freeze cryptocurrency used by criminals.
Under the new regulations, the NCA no longer needs to make an arrest before confiscating cryptocurrency from suspects, as these enhanced measures aim to combat crypto-related crime more effectively.
In an official announcement on April 26th, the UK government updated its legislation on proceeds of crime and terrorism, allowing law enforcement agencies to conduct more thorough investigations, seizures, and recoveries of illicit cryptocurrency. This marks a significant change in the country’s approach to addressing criminal activities involving cryptocurrency.
The updated regulations now permit police to seize cryptocurrency without an arrest, confiscate items that assist investigations, and move illicit cryptocurrency into a secure digital wallet inaccessible to criminals. Furthermore, law enforcement officials can also seize items like written passwords or memory sticks that could provide information for investigations.
The NCA reports that organized criminals, including drug traffickers, scammers, and terrorists, are increasingly using cryptocurrency to launder illegal proceeds and raise funds. They estimate that illicit cryptocurrency transactions connected to the UK amounted to at least £1.2 billion (~$1.5 billion) in 2021.
With these new measures, the British authorities aim to prevent criminals from abusing cryptocurrency while also supporting its potential role as a driver of economic growth.
Additionally, a British citizen has recently been found guilty in a $6 billion Bitcoin fraud scheme.