In response to an investigation by MailOnline, UK authorities have frozen roughly £6 million ($7.7 million) in crypto since new enforcement powers got here into impact final yr.
The measures, launched in April 2024, enable police, legislation enforcement companies, and HMRC to freeze suspicious cryptocurrency wallets for as much as three years.
Courtroom paperwork reviewed over the previous six months reveal the most important single freezing order was for £1.5 million value of cryptocurrency held in a pockets hosted by US-based alternate Coinbase.
HMRC requested this order and issued it at Newcastle Upon Tyne Magistrates’ Courtroom on March 18.
The entire frozen quantity may very well be greater, as courtroom information from Courtsdesk solely covers the previous six months on account of authorized restrictions. The brand new powers have been designed to deal with the rising use of digital currencies for cash laundering, tax evasion, and terrorism financing.
Authorized professional says £6 million is a modest quantity
Authorized consultants supply differing views on the significance of those seizures. Nick Barnard, a cryptocurrency authorized specialist and companion at Corker Binning, described the £6 million determine as comparatively modest “in the grand scheme.” Barnard famous that the brand new enforcement regime began from scratch final April and wishes time to develop totally.
Nonetheless, lawyer Siobhain Egan informed MailOnline that the federal government is directing elevated sources towards freezing cryptocurrency property. That is a part of an aggressive technique to fight cash laundering and terrorism financing, Egan provides.
The freezing course of normally entails investigators making use of for orders with out notifying the alleged criminals. This prevents them from transferring Bitcoin (BTC) or different crypto.
“If police have a major investigation into organized criminals laundering money through crypto, they will go in and seize the assets before they finalize the investigation,” Egan defined.
The UK authorities is bettering its cryptocurrency enforcement actions by means of the Crime and Policing Invoice. The laws contains provisions for valuing cryptocurrency, implementing procedures for courts to recuperate illicit funds, and granting the Crown Courtroom expanded powers to challenge seizure orders.
