The UK has a new crime bill that aims to give local authorities the power to freeze crypto assets faster. The bill may become law if it is passed later this year. According to experts, the bill will help stop crime-related assets from being moved before they are seized.
The bill, called the Economic Crime and Corporate Transparency Bill, was introduced in September 2022. In early July, the bill moved to its final stages in Parliament. Although the UK has seized millions of dollars worth of crime-related crypto assets, the new bill will make the freezing of assets faster. On many occasions, illicit players have been successful in moving crime funds offshore before seizure. The bill aims to address this very issue.
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Louise Abbott, partner at Keystone, stated, “This new bill enabling law enforcement to recover crypto assets in this way will be a powerful tool, and it is anticipated we will see a substantial increase in digital assets being recovered.”
What does the UK’s new crypto crime bill include?
As of now, in the UK, crime-related crypto assets cannot be seized unless authorities make an arrest or conviction. According to experts, this allows criminals to move their assets before authorities get their hands on them. The new bill will remove the need for an arrest or conviction to freeze the movement of such assets. However, technically, seizure or confiscation of assets will still require an arrest or conviction in court. Nonetheless, the bill does say that assets can be confiscated via court proceedings or civil forfeiture powers.
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According to Phil Ariss, director of U.K. public sector relations at TRM Labs, “One area this will be used is on occasions where assets have been identified, significant links to criminality can be proven, but the subject of the investigation is unlikely to face justice in the U.K.”
Ariss is a former head of crypto at the UK National Police Chiefs’ Council cybercrime unit. He is currently on sabbatical leave from the police force. According to Isabella Chase, senior policy adviser at TRM Labs, the UK plans to spend $124 million to fight economic crimes, which is 50% more than the amount spent in 2020. This could be a response to authorities who have asked for more funding to tackle crypto-related crimes.