On April 26, the UK government enacted new legislation granting the National Crime Agency (NCA) and police expanded authority to seize, freeze, and eliminate digital assets associated with criminal activities.

These measures target organized crime groups increasingly exploiting cryptocurrencies for money laundering, aiming to disrupt their financial networks.

Part of a broader strategy to combat cybercrime and manage digital asset risks and benefits in the economy, the updates to the UK's proceeds of crime and anti-terrorism laws remove the prerequisite for an arrest prior to crypto seizure.

This adjustment particularly targets criminals maintaining anonymity or operating from abroad. Law enforcement now has the power to confiscate items aiding criminal investigations and transfer illicit digital assets to government-controlled electronic wallets, blocking criminal access.

Furthermore, authorities can now destroy specific digital assets, especially privacy coins commonly used in illegal transactions, preventing their re-circulation. Victims of crimes can also request the release of funds held in crypto accounts.

Home Secretary James Cleverly emphasized that these reforms make it easier for law enforcement to combat evolving threats, ensuring criminals cannot benefit from illegal activities. He stressed that the changes enhance national security and support legitimate crypto use for economic growth.

Recent operations, such as those by the NCA and the United States Drug Enforcement Administration, resulted in dismantling a multi-million-dollar drug network and seizing $150 million in cash and cryptocurrencies. Successful cases include convicting individuals using crypto for counterfeit drug sales on the dark web and VAT fraud involving non-fungible tokens (NFTs).

Adrian Foster, Chief Crown Prosecutor, underscored the importance of adapting to technological advancements, emphasizing that investigators and prosecutors must remain agile to keep pace with evolving criminal tactics.