The British government has implemented expanded authority for the National Crime Agency (NCA) and law enforcement to confiscate and freeze cryptocurrency utilized by criminals, eliminating the requirement for an arrest before seizure.
To bolster efforts against crypto-related crime, the UK government updates proceeds of crime and terrorism legislation, empowering law enforcement agencies with more robust tools for investigating, seizing and recovering illicit cryptocurrency.
The amendments permit police to confiscate cryptocurrency without the necessity of an arrest, authorize the seizure of assets aiding investigations and enable the transfer of illicit cryptocurrency into a secured digital wallet inaccessible to criminals.
Additionally, officials can now seize items crucial for investigations, such as written passwords or memory sticks.
Home Secretary James Cleverly states the significance of these reforms in enhancing national security, particularly in combatting terrorist organizations like Daesh, known to leverage crypto transactions for fundraising.
According to the NCA, organized criminals, including drug traffickers, fraudsters and terrorists, increasingly turn to cryptocurrency for money laundering and fundraising purposes.
The agency estimates that illicit cryptocurrency transactions linked to the UK amounted to at least £1.2 billion (~$1.5 billion) in 2021.
