TLDR

• UK introduces new Crime Bill expanding powers to seize and destroy crypto linked to criminal activity
• Crown Court granted extended powers to handle confiscation orders involving crypto
• Bill outlines proper valuation of destroyed assets based on market prices
• Complements the Economic Crime and Corporate Transparency Act (EECTA) passed in 2023
• UK facing surge in crypto-related crimes, with illicit transactions estimated between $1.7-5.1 billion annually

The UK government has introduced a new Crime and Policing Bill that expands law enforcement powers to seize and destroy cryptocurrency linked to criminal activity. The bill, currently undergoing its second reading in the House of Commons, aims to tackle the growing problem of crypto-related crimes in the country.

The new legislation gives the Crown Court extended powers to handle confiscation orders involving cryptocurrency. The Crown Court is a UK court that handles serious criminal cases such as murder, fraud, and robbery.

One key aspect of the bill outlines how to handle crypto assets that must be destroyed. It ensures their value is properly assessed based on market prices at the time of destruction.

The bill also includes provisions to simplify the asset recovery process. This will allow law enforcement to recover stolen funds more easily and redirect them to victims.

The goal is to make sure criminals do not keep the benefits of their illegal activities. The government wants to strengthen the ability of the criminal justice system to go after those who have gained from crime.

This new bill builds on the Economic Crime and Corporate Transparency Act (EECTA) that was passed in 2023. The EECTA gave law enforcement additional powers to freeze and seize crypto assets quickly.

The EECTA also aimed to improve corporate accountability in financial crimes. Now, this new bill enhances these measures to address the growing threats from crypto crime.

Rise in Crypto Crime

The UK has been facing a rise in crypto-related crimes in recent years. According to the UK’s National Crime Agency, illicit transactions linked to the country are estimated to be between $1.7 billion and $5.1 billion annually.

Some of these crimes involve violence. In January, a group of seven British men was sentenced to a total of 76 years in prison after kidnapping and torturing a man to make him transfer hundreds of thousands of dollars worth of crypto.

Another case involved a home invasion in Scotland in 2020. During this attack, a victim was threatened with a machete and forced to hand over his cryptocurrency.

The attackers were eventually caught, but not before causing harm and distress to the victim. These violent crimes show why stronger legal measures are needed.

Besides violent crimes, fraud and money laundering related to crypto are also common in the UK. In 2017, a gang of fraudsters exploited a loophole in an Australian exchange called CoinSpot.

This allowed them to withdraw large sums of money without being detected for some time. The group was jailed for money laundering, and last month a court ordered them to repay $30 million in stolen funds.

The Home Office states that the bill will help law enforcement agencies retrieve money from crypto criminals more effectively. It sets out conditions for how courts can retrieve funds and extends the Crown Court’s powers regarding confiscation orders.

The bill is expected to proceed to the committee stage soon, after which it may become law. This represents the UK’s ongoing efforts to adapt its legal framework to address the unique challenges posed by cryptocurrency in criminal activities.