The U.K. government has introduced a new bill expanding its powers to seize and destroy crypto linked to criminal activity.
Following the Crime and Policing Bill’s first reading in the House of Commons, the bill is now undergoing its second reading and will soon proceed to the committee stage.
The new legislation seeks to improve law enforcement’s ability to confiscate illicit crypto assets and return them to victims, while also bolstering the country’s overall approach to economic crime.
A key provision of the bill grants the Crown Court extended powers to handle confiscation orders involving crypto.
The Crown Court is a UK court that handles serious criminal cases such as murder, fraud, and robbery. It also has the authority to pass major sentences.
The bill also outlines how to handle assets that must be destroyed, ensuring their value is properly assessed based on market prices at the time of destruction.
In addition to expanding seizure powers, the bill includes provisions to simplify the asset recovery process, allowing law enforcement to recover stolen funds and redirect them to victims.
The bill strives to ensure that those responsible for crimes involving digital assets do not retain the benefits of their illegal activities.
This new bill complements the Economic Crime and Corporate Transparency Act (EECTA) passed in 2023, which gave law enforcement additional powers to freeze and seize crypto.
The EECTA also aimed to improve corporate accountability in financial crimes. Now, this new bill enhances these measures to address the growing threats posed by crypto crime.
Crypto Crime on the Rise in the UK
The UK has been facing a surge in crypto-related crimes, with illicit transactions linked to the country estimated to be between $1.7 billion and $5.1 billion annually, according to the UK's National Crime Agency.
One of the most disturbing trends involves violent home invasions aimed at stealing digital assets.
A group of seven British men was sentenced to a total of 76 years in prison in January after kidnapping and torturing a man to force him to transfer hundreds of thousands of dollars worth of crypto.
Another shocking case involved a home invasion in 2020. During the attack, a Scotland-based victim was threatened with a machete and made to hand over his crypto.
The machete attackers were eventually caught, but not before causing significant harm and distress to the victim.
Apart from violent crimes, fraud and money laundering related to crypto are also rampant.
In 2017, a gang of fraudsters exploited a loophole in an Australian exchange, CoinSpot, which allowed them to withdraw large sums of money. It went undetected for some time.
The group were jailed for money laundering, and the court ordered them to repay $30 million in stolen funds last month.
Edited by Stacy Elliott.