UK legislators are advancing a new bill designed to enhance law enforcement’s ability to confiscate crypto linked to criminal activities.
The Crime and Policing Bill is currently being reviewed in the House of Commons and is at its second reading stage.
The proposed law tackles several criminal justice concerns, including public order offenses, terrorism, sexual crimes, and economic fraud.
Meanwhile, a major highlight is its focus on crypto asset recovery, ensuring that law enforcement agencies have the legal backing to seize illicit digital assets and return them to victims.
This legislation builds on previous that granted authorities the power to freeze and seize crypto. However, the Crime and Policing Bill takes a more aggressive approach by streamlining asset recovery and eliminating legal loopholes.
Expanded authorities
Part of the bill provision strengthens the Crown Court’s authority over crypto-related confiscation orders.
The Crown Court, which typically handles serious offenses like fraud, robbery, and violent crimes, will now be empowered to oversee the forfeiture of digital assets tied to unlawful activities.
The bill’s explanatory notes stated:
“(The bill) extends to the Crown Court powers – currently only available to magistrates’ courts – in relation to money, cryptoassets and personal property.”
The bill also introduces a framework for destroying seized cryptocurrencies when necessary. If authorities dispose of confiscated crypto, valuation adjustments will be made based on market prices at the time of destruction, ensuring financial accuracy.
It stated:
“Where the property obtained was cryptoassets and has been destroyed by virtue of a court order, the value is the market value at the time as set out by the order.”
Additionally, law enforcement agencies will have broader authority to seize digital assets suspected of being linked to illegal activities, even before formal criminal proceedings conclude.
These measures aim to prevent bad actors from benefiting from illicit gains while investigations are ongoing.
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