Queensland’s law enforcement agency has requested additional powers to seize crypto

The Crime and Corruption Commission (CCC), a law enforcement agency in Queensland, Australia, has identified some loopholes in state laws that encourage criminal use of digital assets.

To address these gaps in the law, the agency is proposing to update Queensland's asset forfeiture system.

The CCC questioned the effectiveness of the Queensland Criminal Code 2002 (CPCA) in dealing with organized crime related cryptocurrencies such as money laundering.

The Commission calls for significant reform of the Act to achieve seven priority outcomes, three of which are directly related to the effective capture of digital assets. And so he said.

“As the physical nature of the crime environment continues to deteriorate and the CPCA becomes less effective in dealing with digital assets, it is expected that digital assets will continue to proliferate.”

The absence of crypto-related language in the CPCA, such as cryptocurrency or digital assets, is a major cause of gaps in Queensland's legislative regime, the CCC said.

Noting the need for the CPCA to remain fit for purpose in a changed crime environment, the Commission added:

“While digital assets can be frozen and destroyed under the CPCA, there are currently no specific provisions in Queensland for investigative agencies to effectively seize digital assets.”

The CCC recognizes that this inability to hold digital assets prevents Queensland from gathering evidence, disclosing ownership of digital assets, or facilitating the storage or transfer of digital assets, among others.

The commission has recommended reforms such as defining “digital assets” and introducing anti-money laundering laws, converting seized assets into stable currencies through legal processes and automatic forfeitures.

Related: Australia poised for ‘inflection point' in crypto demand – Kraken Aus MD

In March, Australian Securities and Investments Commission (ASIC) Commissioner Alan Kirkland announced a strategy to foster the development of responsible financial innovation.

Kirkland pointed out the importance of solving the “regulatory trilemma” regarding consumer protection, market integrity and financial innovation that promotes financial innovation.

Kirkland believes ASIC's innovative approach and effective regulation will help reduce associated risks and promote digital assets to the masses.

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