Key takeaways:
- With the newfound power to “seize, freeze, and destroy” crypto used by criminals, the NCA and police in the UK can now do more.
- If putting a cryptocurrency back into circulation is thought to be harmful to the general welfare, UK law enforcement will also have the authority to remove it from the market.
With the newfound power to “seize, freeze, and destroy” cryptocurrencies used by criminals, the National Crime Agency (NCA) and police in the United Kingdom can now do more.
Under the new regulations, law enforcement officials in the nation will no longer need to make an arrest before confiscating cryptocurrency assets.
According to a news release issued by the UK Home Office, the police have the authority to confiscate objects such as memory sticks or passwords that may be useful for future investigations. If putting a cryptocurrency back into circulation is thought to be harmful to the general welfare, UK law enforcement will also have the authority to remove it from the market.
The new regulations, which go into effect on April 26, include provisions allowing the police to move illegal bitcoin they confiscate to wallets under their jurisdiction and allowing victims of crimes to request the return of money from their cryptocurrency accounts.
The UK Home Secretary James Cleverly stated that criminals cannot make money from their illicit activity. Cleverly used group fundraising using cryptocurrencies as justification for the increased police authority.
“These reforms will also enhance our national security. Terrorist organizations like Daesh are known to raise funds through crypto transactions, and these updated powers will enable our agencies to more easily strip them of their assets.”
The new laws came into effect after the UK government passed a criminal bill in 2023 that made it easier to seize crypto quickly.
The press release emphasized how destructive privacy coins are to the general welfare. While public ledgers used by the majority of cryptocurrencies, such as Bitcoin and Ether, give users a semblance of anonymity, privacy coins offer a far higher degree of anonymity.
It should be emphasized that, despite wallet addresses being anonymous, any transactions performed with that wallet can be tracked down and identified once they are linked to a specific person’s identity through processes like Know Your Customer (KYC).
The announcement acknowledged that nonfungible tokens and cryptocurrencies are utilized by fraudsters and drug dealers, as shown by various investigations, but it also said that the new modifications are intended to deter criminals from using cryptocurrency for illegal activities while simultaneously promoting its potential to drive economic growth lawfully.
However, it did clarify that the new measures aim to promote cryptocurrency’s ability to lawfully spur economic growth and deter criminals from using it for illegitimate purposes.
Not only in the UK but throughout the world, governments and law enforcement have recently stepped up their efforts to oppose crypto privacy initiatives. On April 24, US officials detained the founders of the Bitcoin mixer Samourai Wallet on suspicion of conspiring to money laundering.
