UK bolsters crypto law enforcement efforts with new bill passage

Following the passage of the Economic Crime and Corporate Transparency Bill, the UK law enforcement authorities will now find it easier to confiscate the crypto assets of bad actors. The legislation takes effect in April.

A recently issued statutory instrument documentation indicates that U.K. law enforcement agencies will gain the authority to freeze cryptocurrency assets involved in criminal activities without requiring a conviction.

Issued on Feb. 29, the bill summarized its amendments to the Economic Crime and Corporate Transparency Act 2023, expanding the National Crime Agency’s power to confiscate and seize crypto assets suspected of being linked to illicit activities, without extensive legal procedures.

Starting from April 26, the UK’s economic crime legislation will incorporate civil recovery orders for confiscating crypto assets. Furthermore, authorities will have the capability to retrieve crypto assets directly from exchanges and custodian wallet providers, with the option to destroy them if necessary.

Although not explicitly detailed, the typical method for destroying a crypto token involves burning it, and transferring the tokens to a burn wallet address, thus removing them from circulation.

One provision of the Economic Crime and Corporate Transparency Bill enables the recovery of crypto assets used in crimes without requiring an initial arrest, as some individuals may evade conviction by staying abroad.

The Bill also contains a provision that criminalizes resisting or assaulting a law enforcement officer in the process of seizing a cryptocurrency asset.

Tackling crypto crimes

The United Kingdom has taken decisive steps to address the growing concerns about cryptocurrency involvement in criminal activities such as cybercrime, scams, and drug trafficking.

One significant measure was the introduction of the Economic Crime and Corporate Transparency Bill in 2022, which subsequently received royal assent on October 26, 2023, becoming an official Act of Parliament.

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Author: Ogwu Osaemezu Emmanuel

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