UK Passes a Law Allowing Seizure of Crypto Used in Crime

Vignesh Karunanidhi
UK Passes a Law Allowing Seizure of Crypto Used in Crime
Source: Blockchain Legal Resource

The United Kingdom Parliament has passed a bill that grants police new powers to seize and freeze cryptocurrencies linked to criminal activity.

The Economic Crime and Corporate Transparency Bill, which received royal assent on Thursday, aims to bolster law enforcement tools for tackling economic crimes like drug trafficking, cybercrime, and terrorism. Its provisions allow UK police to confiscate crypto assets associated with a crime without requiring a conviction.

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UK’s new move will aid in faster crypto seizure

Experts say this will aid police in time-sensitive cases by avoiding lengthy court procedures to seize cryptocurrency. Additional clauses were added to the original bill to ensure it covers terrorist financing. Additionally, the bill helps authorities identify crypto tied to crime through related assets.

The new crypto crime law comes as the UK strives to position itself as a global hub for cryptocurrencies while simultaneously cracking down on their illicit use. Earlier this year, the UK government announced plans to make London the world’s most crypto-friendly financial center.

However, British authorities have also ramped up enforcement around crime involving digital assets. UK law enforcement agencies have seized hundreds of millions of crypto funds linked to illegal activity. Police departments nationwide now have dedicated crypto tactical advisers to assist in cryptocurrency investigations.