UK Authorities Obtain Authority to Confiscate Cryptocurrency Assets Without Making Arrests

Crypto assets can now be confiscated by authorities in the United Kingdom without an arrest, according to the National Crime Agency (NCA) and police. The new regulations grant law enforcement the power to “seize, freeze, and destroy” offenders’ cryptocurrency holdings. The country’s Home Office states that if reintroducing a cryptocurrency into circulation is deemed harmful to society, it can be removed. Additionally, victims of crimes can seek to recover funds confiscated from their cryptocurrency accounts. British Home Secretary James Cleverly justified the expanded powers by highlighting crypto fundraising efforts by various parties. The regulations come as a result of a criminal statute passed in 2023 that allows for quick confiscation of crypto.
Privacy coins, which offer a higher degree of anonymity compared to most cryptocurrencies, were singled out as being “detrimental to the public good.” While the addresses associated with privacy coins remain anonymous, when linked to a person’s identity through processes like Know Your Customer (KYC), it becomes possible to track and identify all transactions performed by that wallet.