The UK has given police permission to seize illegal crypto without arrest.
UK police now have the power to seize, freeze or destroy criminal crypto holdings.
It follows a new law that goes into effect today, April 26, 2024.
There are reforms to help the UK's national security, Home Secretary James Cleverley said.
Law enforcement authorities in the UK can now seize, freeze or destroy crypto assets deemed illegal without first having to make any arrests.
This comes after the UK government updated legislation on crime and terrorist financing to allow police and the National Crime Agency (NCA) to investigate and seize any cryptocurrency linked to criminal activity.
The new rules will come into effect on April 26, 2024, according to a press release published by the UK Home Office on Friday. Targets include drug traffickers, fraudsters and terrorists, among other organized criminals.
Under the new powers, the police can not only seize crypto, but also transfer seized assets to electronic wallets or destroy them if their return to circulation is proven to be negative to public interest. Law enforcement officers are authorized to monitor passwords or notebooks.
“The changes taking effect today will stop criminals from undermining the legitimate use of crypto, and support crypto's growth as a driver of economic growth,” reads part of the press release.
“Bad news for criminals” fixes
Home Secretary James Cleverley said the reform was vital to the UK's national security, ensuring criminals would never be allowed to profit from illegal activities.
UK Security Secretary Tom Tugendhat added that the revised law was “bad news for criminals”.
The UK's new law will come into force after Parliament passes the relevant Criminal Code in September 2023. The development helped the police and NCA to seize illegal crypto worth millions of dollars.
For example, the NCA partnered with the US Drug Enforcement Administration (DEA) in January of this year to seize more than $150 million from a criminal drug syndicate.
The United Kingdom has arrested three people who received more than £750,000 ($937,890) in crypto for counterfeit drugs. In the year In 2021, UK police seized $250 million in money laundering.
