UK police allowed to seize criminal crypto holdings without arrest

The UK's National Crime Agency (NCA) and police have been given broad powers to “seize, detain and destroy” cryptocurrency used by criminals. Due to the new regulations, the police in the country are not required to arrest before seizing crypto holdings.

According to a press release from the UK Home Office, the police may seize items such as passwords or memory sticks to aid investigations. UK law enforcement can remove crypto assets if a return to circulation harms the public interest.

Part of the new rules, which will take effect on April 26, states that police can transfer money to wallets under arrest and that victims of crime can apply to access funds from their crypto accounts.

UK Home Secretary James Cleverley said criminals should not profit from illegal activities. The rationale behind the new police force has been tactfully cited by groups to raise crypto funds.

“These reforms will enhance our national security. Terrorist organizations like Daesh are known to raise funds through crypto transactions and these enhanced powers allow our agencies to easily seize their assets.

The new rules came into effect after the 2023 Parliament of the United Kingdom passed the Criminal Code, which facilitated the rapid seizure of cryptocurrency.

Related: UK to propose clear crypto rules by July

The press release highlighted that privacy coins are “harmful to the public interest”. While most cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) employ public ledgers that provide users with pseudonymous identities, privacy coins offer a much higher level of anonymity.

However, it should be noted that while wallet addresses are anonymous, once an individual's identity is linked to processes such as Know Your Customer (KYC), all transactions made through the wallet can be identified and traced.

The announcement stated that the new changes aim to prevent criminals from using crypto for illegal purposes, as seen in various investigations, where cryptocurrencies and immutable tokens are used by drug traffickers and fraudsters.

However, the new changes are intended to prevent criminals from using crypto for illegal purposes and to legitimately promote economic growth, he said.

Not only in the UK, but globally, governments and law enforcement agencies are stepping up efforts on crypto privacy initiatives. On April 24, authorities in the United States arrested the founders of Bitcoin aggregator Samurai Wallet on charges of conspiracy to commit money laundering.

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