The release of Statutory Instrument documentation by the United Kingdom government has announced that law enforcement authorities will have the power to freeze crypto assets used in criminal activities without requiring a conviction starting from the end of April. The amendments made to the Economic Crime and Corporate Transparency Act 2023 will enable the National Crime Agency to confiscate and seize crypto assets suspected of being linked to illicit activities without undergoing lengthy legal procedures. Furthermore, authorities will be able to retrieve crypto assets directly from exchanges and custodian wallet providers and even have the option to destroy them if necessary. Although the process for destroying crypto tokens was not specified, the most common method is by burning them, transferring the tokens to a burn wallet address to remove them from circulation. The law will come into effect on April 26.
In September 2022, it was reported that the passed legislation aims to enhance authorities’ ability to combat the use of crypto in various crimes such as cybercrime, scams, and drug trafficking. One provision of the Economic Crime and Corporate Transparency Bill allows for the recovery of crypto assets used in crimes without the need for an arrest, as some individuals may evade conviction by staying overseas. However, a British victim of crypto fraud who lost approximately $46,000 to scammers expressed concerns that UK authorities may not be adequately equipped to handle crypto crimes targeting UK residents, claiming that the agency did not take sufficient action to retrieve his stolen funds.
Meanwhile, the UK government has recently expressed its intentions to pass new laws to regulate stablecoins and crypto staking within the next six months. During a crypto event hosted by Coinbase in London, Economic Secretary to the Treasury Bim Afolami revealed that the government aims to complete the regulation before the upcoming election, which is scheduled to take place no later than January 28, 2025.