UK Government Proposes Bill to Recover Proceeds of Crypto Crime
Strengthening Legal Capabilities
The UK government has laid before parliament the Crime and Policing Bill, which strengthens the country’s ability to recover and confiscate cryptocurrency assets used in criminal activities. This is at a time when there are growing fears that digital currencies have been exploited to enable organized crime, fraud, and money laundering.
The bill broadens the jurisdiction of UK courts by setting out precise procedures for the valuation and confiscation of cryptocurrency linked to crime. The Crown Court will gain increased authority to issue orders for seizure, enabling the police to move rapidly against criminals attempting to hide assets in digital wallets.
The legislation also deals with broader criminal justice issues, such as anti-social behavior, sexual crimes, public order, and terrorism, but specifically targets dealing with financial crimes via cryptocurrency.
Crypto-Specific Measures
One of the most important provisions in the bill is the destruction of seized cryptocurrency assets. When a court orders digital assets to be destroyed, their value at the time of destruction will be recorded, leaving space for the possibility of adjustment in case of changes in the value. The provision takes into consideration that even where crypto assets are lost or removed, their financial worth is still recorded in court documents.
Additionally, Section 215ZA of the bill modifies existing confiscation order law. The modification replaces references to the magistrates’ court with the proper court, making the Crown Court have jurisdiction for cryptocurrency seizures. This modification harmonizes crypto-financial crime enforcement with other asset seizures of high value.
Enhancing Confiscation Procedures
The Crime and Policing Bill aims to streamline and strengthen how the police handle criminally obtained cryptocurrency. Through clearer legal guidelines on seizure, valuation, and recovery, the UK government is attempting to deter criminals from using the decentralized nature of digital currency.
Also, the amendments will increase the ability of courts to tackle confiscation orders such that cryptocurrency can be efficiently traced and retrieved. With cryptocurrency becoming more engaged in financial crimes, this bill is a significant move towards overhauling the UK’s legal system to tackle new threats in the crypto space.
If enacted, the bill will give powers to the authorities to act more firmly against criminals employing cryptocurrency, solidifying the UK’s position on fighting digital financial crimes.
