Following the passage of the Economic Crime and Corporate Transparency Bill, UK law enforcement authorities believe it will be easier to confiscate the crypto assets of bad actors. The law will take effect in April.
Recently published legal documents indicate that UK law enforcement will gain powers to freeze crypto assets involved in criminal activity without the need for a conviction.
The bill, published on February 29, consolidates the Economic Crimes and Corporate Transparency Act Amendments 2023, which allows for the confiscation and seizure of crypto assets suspected of being linked to illegal activities without extensive legal process. expanded the powers of the National Crime Agency to
From April 26th, civil recovery orders for the confiscation of crypto assets will be incorporated into the UK Economic Crimes Act. Furthermore, authorities have the ability to recover crypto assets directly from exchanges and custodian wallet providers, and can also destroy crypto assets if necessary.
Although the details are not specified, common methods of destroying crypto tokens include burning them, transferring the tokens to a write wallet address, and removing them from circulation.
Crypto assets used in crimes without requiring an initial arrest, as one of the provisions of the Economic Crimes and Corporate Transparency Bill allows some individuals to avoid conviction by staying abroad. can be recovered.
The bill also includes a provision that would make it a crime to resist or assault a law enforcement officer during the process of seizing cryptocurrency assets.
Tackling cryptocurrency crime
The UK has taken decisive action to address growing concerns about the involvement of virtual currencies in criminal activities such as cybercrime, fraud and drug trafficking.
One of the key measures was the introduction of the Economic Crime and Corporate Transparency Bill 2022, which subsequently received Royal Assent on 26 October 2023 and became a formal Act of Parliament.
The bill has emerged in response to the evolving landscape of financial crimes such as money laundering, fraud, bribery and corruption.
In September 2022, the UK's National Crime Agency (NCA) established a specialized unit called “Cryptocells” to tackle digital crimes related to virtual currencies. This initiative means an increased focus on combating cyber threats and financial crimes related to crypto assets.
Cryptocell will initially consist of five personnel, operating within the national cybercrime sector and assigned active tasks specifically aimed at combating cryptocurrency-related crimes.
Additionally, in March 2023, the UK and US jointly announced sanctions against seven Russian cybercriminals linked to notorious ransomware attacks, including the Trickbot malware and the Conti and RYUK ransomware strains. These sanctions include freezing the offenders' assets and imposing restrictions on their use of the global financial system.
Looking ahead, the UK government has announced a commitment to introducing new legislation governing stablecoins and crypto staking within the next six months.
Treasurer Bim Afolami emphasized the government’s commitment to passing the bill before the upcoming general elections. This proposed regulation specifically targets improvements to the regulatory framework in the virtual currency sector.
The UK government's agenda includes establishing rules governing stablecoins and staking services. The proposed timeline would see consultation on the final rules by mid-2024, with the introduction of the stablecoin system scheduled for 2025.
Despite previous commitments and consultations on crypto regulation, significant progress has been made towards creating a favorable regulatory environment for crypto companies operating in the UK.
