UK Freezes Millions In Crypto After New Powers Take Effect

Authorities in the United Kingdom have frozen about £6 million (≈$7.7 million) worth of cryptocurrency since new enforcement measures came into force last year, according to an investigation by MailOnline. The powers, introduced in April 2024, permit police, law enforcement agencies, and HM Revenue & Customs (HMRC) to freeze suspicious cryptocurrency assets for up to three years.

New Enforcement Tools in Action

Court documents from the past six months indicate the largest single freezing order – £1.5 million in crypto – was imposed on a wallet hosted by Coinbase, a U.S.-based exchange. This specific order was requested by HMRC and issued at Newcastle Upon Tyne Magistrates’ Court on March 18.

Why the Powers Exist

The expanded authority to freeze digital assets was devised in response to concerns over the use of Bitcoin and other crypto assets for money laundering, tax evasion, and potential terrorism financing. Although the recorded total currently stands at £6 million, the true figure could be higher since publicly available court data only covers the last six months.

Legal Perspectives

Opinions vary on whether £6 million is a significant sum. Nick Barnard, a cryptocurrency legal specialist at Corker Binning, calls it modest “in the grand scheme,” given the system started from zero last April. He anticipates higher totals once the new enforcement regime fully matures.

On the other hand, lawyer Siobhain Egan told MailOnline the government is pouring additional resources into freezing cryptocurrency. She describes the strategy as an aggressive move aimed at halting criminal activities that exploit digital assets.

How the Freezing Process Works

Investigators generally submit freezing orders without notifying the owners of the suspicious funds, preventing them from transferring assets. This tactic is especially crucial in major investigations involving organized crime, where criminals could quickly move or hide their funds if tipped off.

“If police have a major investigation into organized criminals laundering money through crypto, they will go in and seize the assets before they finalize the investigation,” Egan noted.

Strengthening Legal Framework

The UK government is refining its approach to crypto enforcement further via the Crime and Policing Bill. The legislation clarifies how authorities should value confiscated crypto and outlines processes for courts to recover illicitly obtained assets. It also grants the Crown Court broader powers to issue seizure orders, signaling that the UK remains serious about regulating the cryptocurrency space.