The UK government has passed new legislation that will enable law enforcement authorities to freeze and seize crypto assets without the need for a criminal conviction. The amendments to the Economic Crime and Corporate Transparency Act 2023 grant the National Crime Agency expanded powers to confiscate crypto assets suspected to be linked to illicit activities.
Efforts to Crack Down on Illicit Crypto Activities
Starting from April 26, authorities will have the ability to freeze crypto assets directly from exchanges and custodian wallet providers, and even destroy them if necessary. This move is a part of the UK’s efforts to crack down on cybercrime, scams, drug trafficking, and other illicit activities involving cryptocurrencies.
“Authorities in the UK will soon have increased powers to seize crypto assets. ”
Concerns and Future Regulations
However, concerns have been raised about the UK authorities’ capability to handle crypto-related crimes against UK residents, with some victims expressing frustration over the agency’s failure to retrieve stolen funds. The government also aims to regulate stablecoins and crypto staking within the next six months, striving to complete the regulation before the upcoming election in 2025.
