Modernising our proceeds of crime legislation: bringing crypto assets into the enforcement fold

UK criminal authorities now have new powers to investigate, freeze, seize and recover crypto assets. The powers result from amendments made by the Economic Crime and Corporate Transparency Act 2023 (ECCTA) to the Proceeds of Crime Act 2002 (POCA) and are intended to improve the civil and criminal investigative regimes for crypto assets. 

The amendments introduce new powers, effective from 26 April 2024, to make it easier for authorities to freeze, seize, investigate and recover unlawful crypto assets. It does this by enhancing both civil and criminal law powers. These reforms reflect the concern that crypto assets are being used by criminals to launder illicitly obtained funds and other assets. Accordingly, the measures are aimed at safeguarding the continued development of crypto assets as a source of economic growth while attempting to limit their use for criminal purposes.