UK Authorities to Strengthen Crypto Seizure Powers from April 26

1. From April 26, authorities gain power to freeze assets tied to crimes without a conviction starting April 26.

2. Civil orders streamline crypto confiscation, targeting cybercrime and illicit activities.

3. UK plans to regulate stablecoins and crypto staking in six months, targeting completion before Jan 2025.

The United Kingdom government is set to tackle crypto-related crimes as amendments to the Economic Crime and Corporate Transparency Act 2023 come into effect on April 26. 

The new legislation of UK empowers law enforcement agencies, particularly the National Crime Agency, to freeze and seize crypto assets associated with suspicious activities without the need for a prior conviction.

Civil Recovery Orders for Crypto Confiscation

The statutory instrument documentation, released on Feb. 29, outlines the introduction of civil recovery orders. This provision allows authorities to confiscate crypto assets directly from exchanges and custodian wallet providers.

This is streamlining the process of tackling illicit activities such as cybercrime, scams, and drug trafficking. Additionally, the legislation grants authorities the option to destroy crypto assets if necessary. 

While the document does not delve into specific procedures, the most common method for destroying a crypto token involves burning it. This entails transferring the tokens to a burn wallet address, effectively taking them out of circulation.

Despite the government’s efforts, critics raise concerns about the authorities’ effectiveness in addressing crypto crimes against UK residents.

A victim of crypto fraud, who lost $46,000 to scammers, criticized the agency for allegedly failing to take adequate measures to recover stolen funds.

Future Regulatory Measures

UK government aims to introduce new laws within the next six months to regulate stablecoins and crypto staking. Economic Secretary to the Treasury, Bim Afolami, revealed this timeline during a recent crypto event hosted by Coinbase in London. The government is committed to finalizing these regulations before the next election, scheduled for no later than Jan. 28, 2025.

“We’re very clear that we want to get these things done as soon as possible. And I think over the next six months, those things are doable.”

Bim Afolami

As the crypto landscape continues to evolve, these legislative changes signal the UK’s proactive approach to mitigate the misuse of cryptocurrencies in criminal activities. The aim is establishing a framework for stablecoins and crypto staking in the near future.