It is estimated that the illicit crypto transactions connected to the UK were worth as much as £1.2 billion in 2021. The new powers will help law enforcement to investigate and recover these assets, even if the perpetrators are based overseas and using cryptocurrencies to maintain their anonymity.
Under the new measures, police will no longer be required to make an arrest before seizing crypto from a suspect, and officers will be able to transfer illicit crypto assets into an electronic wallet controlled by the police. This will make it easier to protect the money and evade detection by criminals.
In addition, the police will now have the power to destroy crypto assets if returning them to circulation is not conducive to the public good. This includes the use of privacy coins, which are a form of cryptocurrency that grant an extremely high degree of anonymity and are often used for money laundering.
The new measures also aim to protect the legitimate use of crypto by facilitating the growth of the cryptocurrency sector while also supporting innovation and economic growth.
UK Home Secretary James Cleverly said: “Criminals should never be able to benefit from breaking the law, which is why we are making it much easier for law enforcement to stay on top of a new and developing threat. These reforms will also enhance our national security. Terrorist organisations 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.”
UK Security Minister Tom Tugendhat said: “These reforms are bad news for criminals, they send a clear message we will never let crime pay. Our agencies have already shown they have the expertise to target sophisticated criminals and deprive them of their ill-gotten gains. These new measures will help them take the fight to the next level.”