01 May

The National Crime Agency (NCA) and police in the United Kingdom now have more jurisdiction to deal with bitcoin used for illegal purposes. This includes the ability to "seize, freeze, and destroy" digital assets related to cryptocurrency.

The new rules will eliminate the UK law enforcement requirement to make an arrest before seizing cryptocurrency holdings.

The UK Home Office announced in a statement that police can now seize items including memory sticks and passwords that can help with ongoing investigations.

Furthermore, in the event that returning a crypto asset into circulation is judged to be detrimental to the public interest, UK law enforcement will possess the right to remove it from circulation.

The new legislation, which go into effect on April 26, provide police the ability to move illegal bitcoin that has been found to wallets under their jurisdiction. They also provide for crime victims to request payment from their cryptocurrency accounts.

The establishment of these new police powers was prompted, in part, by the usage of cryptocurrencies by various groups for fundraising. UK Home Secretary James Cleverly stressed the importance of preventing criminals from making money from illicit operations.

shrewdly emphasized the possible ramifications for national security, pointing out examples of how terrorist groups like Daesh have been known to use cryptocurrency transactions to fund their activities. This emphasizes the significance of enabling agencies to more successfully seize these groups' assets.

The implementation of these restrictions comes after the UK government passed a criminal bill in 2023 that made it easier to seize bitcoin holdings quickly.

The press release singled out privacy currencies as being especially harmful to the general welfare.

Cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) provide users with a certain level of pseudo-anonymity through public ledgers, but privacy coins give users even more anonymity.

Although wallet addresses are anonymous, once they are connected to a person's identity via processes like Know Your Customer (KYC), all transactions made through that wallet can be located and identified.

The declaration admitted that fraudsters and drug dealers have taken use of cryptocurrencies and nonfungible tokens (NFTs), which prompted a number of investigations.

The new regulations, however, are intended to limit the use of cryptocurrency for illegal activities while promoting its legal potential to stimulate economic expansion.

The founders of the Bitcoin mixer Samourai Wallet were arrested on April 24 in the United States on suspicion of conspiring to commit money laundering, demonstrating that law enforcement is taking a worldwide approach to regulating cryptocurrency.

May 2024, Cryptoniteuae

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