The United Kingdom has introduced new legislation allowing law enforcement to seize and freeze cryptocurrency assets suspected of being used for criminal activities without requiring a conviction.
The amended Economic Crime and Corporate Transparency Act 2023, effective April 26th, grants the National Crime Agency expanded authority to confiscate digital assets from exchanges and custodians if deemed linked to illegal transactions. Officials will also have the power to destroy seized crypto if necessary.
The regulations aim to curb the use of cryptocurrency in cybercrime, scams, and drug trafficking. Authorities can now seize assets without making an arrest, preventing criminals operating abroad from evading punishment.
The changes come amid the UK government’s push for clearer crypto regulations, with plans to introduce rules on stablecoins and staking within six months, according to Economic Secretary Bim Afolami. The goal is to finish legislation before the next election, scheduled for January 2025 at the latest.
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