People who have been victims of crimes could try to get back money taken from their cryptocurrency accounts. Authorities in the United Kingdom now have the ability to take away, freeze, or get rid of offenders' cryptocurrency holdings. The National Crime Agency (NCA) and police have stated that they can confiscate crypto assets without having to arrest anyone, based on the new rules.

A statement from the UK's Home Office mentions that during an investigation, authorities can take things like memory sticks or passwords. If British officials believe that reintroducing a cryptocurrency could harm society, they are allowed to take it out of circulation.

To Boost Law Enforcement

Starting from April 26, the new rules give law enforcement the power to transfer seized cryptocurrency to wallets controlled by the authorities. Those who have been hurt by crimes might try to get back money taken from their crypto accounts.

British Home Secretary James Cleverly stressed that criminals should not profit from their illegal actions. Cleverly explained that the police were given more power after seeing people fundraising using cryptocurrency. The new regulations were introduced after the British parliament passed a law in 2023, allowing fast seizure of cryptocurrency.

Privacy coins were highlighted as damaging to the public good. Privacy coins offer more anonymity compared to typical cryptocurrencies that only provide pseudo-anonymity. Once a wallet address is tied to a person's identity through methods like Know Your Customer (KYC), it becomes possible to trace all transactions made by that wallet, even if the addresses themselves stay anonymous.