UK Bolsters Crypto Seizure Powers: New Bill Targets Criminal Assets

The UK government has introduced a new bill, the Crime and Policing Bill, which aims to bolster its powers to seize and destroy cryptocurrencies linked to criminal activities. The bill, which has already undergone its first reading in the House of Commons, is now proceeding to the committee stage following its second reading.

The legislation seeks to enhance law enforcement's ability to confiscate illicit crypto assets and return them to victims, while also strengthening 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 cryptocurrencies. The Crown Court, which deals with serious criminal cases such as murder, fraud, and robbery, will now have the authority to manage these orders more effectively.

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 ultimate goal is 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 cryptocurrencies. 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.

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. 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 force him to transfer hundreds of thousands of dollars worth of cryptocurrency.

Another shocking case involved a home invasion in 2020, where a Scotland-based victim was threatened with a machete and made to hand over his cryptocurrency. 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 cryptocurrencies are also rampant. In 201