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11 October 2024 / Andrew Bird KC
Issue: 8089 / Categories: Features , Criminal , Crypto , Cybercrime , Regulatory
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Cracking down on crypto

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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

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NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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