The state now recognises that cryptoassets are being used to trade & hold the proceeds of crime. Andrew Bird KC examines the new regulatory powers
- Examines the new powers added to the Proceeds of Crime Act 2002 for the search, seizure, freezing, forfeiture and destruction of cryptoassets, in force since 26 April 2024. What is set out below applies only to England and Wales. Similar provisions for Scotland are not yet in force.
On 26 April 2024, the amendments to the Proceeds of Crime Act 2002 (POCA 2002) enacted in Sch 8 and 9 to the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) were brought into force. These provide express powers of search, seizure, freezing, forfeiture, realisation and/or destruction of cryptoassets and cryptoasset-related items (CRIs). Definitions are provided, and non-fungible tokens, as well as cryptocurrency, are included.
In fact, the more adventurous law enforcement agencies had been using existing legislation without challenge for some years, as the definitions of ‘property’ in s 84 of POCA 2002 (for the criminal powers in Pt 2) and s 316(4)
