The UK’s National Crime Agency and police have been granted powers to “seize, freeze, and destroy” cryptocurrency used by criminals.
As part of investigations, law enforcement agencies will be able to confiscate passwords or memory cards and liquidate crypto assets if their return to circulation is deemed harmful to the public good. This particularly applies to private coins.
The police have been given the authority to transfer seized illegal cryptocurrency to controlled wallets for subsequent return to crime victims, should they submit the appropriate claims.
A press release states that digital assets and NFTs are used by drug dealers and fraudsters. The new changes aim to prevent the use of cryptocurrencies by criminals for illegal purposes.
“The reforms will strengthen our national security. It is known that terrorist organizations like Daesh [ISIS] raise funds in digital assets,” commented the country’s Home Secretary, James Cleverly.
Back in July 2023, the UK’s House of Lords approved a bill on the seizure and freezing of cryptocurrencies linked to criminal activities.
In March, the government introduced a three-year “Economic Crime Plan,” which includes measures to strengthen the fight against the use of digital assets for criminal purposes.
Earlier, the Treasury unveiled plans to implement oversight of Bitcoin exchanges.