UK Authorities Make Historic Bitcoin Seizure With 61,000 BTC Worth $7B
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Key Takeaways
Major UK economic and crypto regulations come into effect from April 26, 2024.
UK authorities will be able to confiscate ‘illicit’ crypto without conviction.
Crypto scams have cost the UK billions since 2019, and this figure continues to rise.
As it works to establish more robust crypto regulations and curb cryptocurrency-related crimes, the UK government has introduced a new bill that grants law enforcement unprecedented legal powers.
According to the latest amendment to The Economic Crime and Corporate Transparency Act 2023, the National Crime Agency now has the expanded authority to freeze, seize, and destroy crypto assets connected with illegal activity without needing a conviction.
Enhanced Authority Over Crypto
The UK’s sweeping new economic crime legislation comes into force on April 26, 2024, and will now include civil recovery orders for confiscating cryptocurrency assets, This includes being able to retrieve crypto from exchanges and custodian wallet providers.
Enhanced crypto regulations.
UK authorities will now also be able to destroy crypto assets if necessary. Though their methodology isn’t outlined, presumably, they’ll leverage commonly-used ‘ burn wallets that remove coins from circulation.
Being able to recover crypto assets without arrest may be a cause of concern for some. But, it is intended to be used in situations where, for example, individuals are evading conviction by living in another country.
Adequate or Overbearing?
This is a rather pivotal piece of legislation that has broader implications for the crypto industry and users in the UK. Arguably, it raises questions on the balance of regulatory oversight and individual freedoms, and any perceived overreach could impede the ambitions of UK Prime Minister, Rishi Sunak, to turn the UK into a crypto hub.
There’s some frustration in the air as many UK banks no longer allow customers to interact with crypto, preventing them from investing with the likes of Coinbase, Binance, and others. Rhys King, co-founder of the crypto educational platform, 123Cryptos, posited his thoughts on Twitter.
The only banks left that are openly crypto friendly in the UK are Revolut and Xace. Revolut have limited transfers to £1000 a day and Xace has an expensive monthly fee.
I’ve also been able to use my debit card with Wise recently, 10k a day limit but high exchange fees.
On the other hand, it can be said that this is an adequate measure to deter the use of crypto in illegal activities, which could give investors and businesses greater confidence in the UK as a place to conduct crypto-related business and activities.
Unfortunately, the UK has been struggling to get to grips with the advances of crypto, digital asset technologies, and the methodologies of cyber criminals, which is reflected by the ever-increasing numbers of victims and money lost to crypto scams and frauds.
Crypto Scams Costing UK Investors
This latest development underscores the UK’s bid to catch up to crypto and blockchain technologies that, unfortunately, give cybercriminals frequently updated means of outpacing lawmakers.
As per data published by the UK House of Lords Digital Fraud Committee, as well as Freedom of Information requests, crypto-related frauds, and scams are rising, totaling over £4.5 billion in losses between 2019 and 2022.
In November 2023, UK-based Lloyds Bank published data that highlighted the need for powerful consumer protections around crypto, finding that crypto scams had increased by 23% in 2023. According to the report, the cost of a crypto scam is higher than any other type of consumer fraud, averaging at £10,741.
According to data provided to legal firm RPC by UK fraud and cybercrime watchdog, Action Fraud, this figure is even higher, with an estimated £306 million lost to crypto fraud between March 2022 and March 2023.
It’s important to note that these figures were achieved during a market downturn, and as the market begins to rise once more, so do illicit crypto activities. By mid-2025, we may see the impact the latest crypto legislation has in the UK, and hopefully, these figures stop increasing year-on-year.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
