UK authorities to gain enhanced powers in confiscating crypto assets
The legislation seeks to enhance the authorities' capacity to combat the utilisation of cryptocurrency in criminal activities such as cybercrime, scams, and drug trafficking
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The UK government has unveiled statutory instrument documentation indicating that law enforcement agencies in the UK will gain the authority to freeze crypto assets involved in criminal activities without necessitating a conviction, effective from the end of April.
Released on February 29, the document delineates revisions to the Economic Crime and Corporate Transparency Act 2023, which empower the National Crime Agency to seize and confiscate suspected crypto assets associated with suspicious illicit behaviour.
Moreover, authorities will possess the capability to retrieve crypto assets directly from exchanges and custodian wallet providers. They will also have the discretion to destroy
cryptocurrency assets if deemed necessary.
Although the process was not detailed, the typical method for destroying a cryptocurrency token involves "burning" it, wherein the tokens are transferred to a designated burn wallet address, effectively removing them from circulation.
