The UK Government has decided to implement new measures granting law enforcement agencies increased powers over cryptocurrency assets. Starting on 26 April 2024, the UK will implement new measures granting law enforcement agencies increased powers to freeze cryptocurrency assets suspected of being used in criminal activities, even without a conviction.

These amendments are part of the modifications to the Economic Crime and Corporate Transparency Act 2023. Outlined in a document disclosed on 29 February, the amendments authorise the National Crime Agency (NCA) to seize cryptocurrency assets believed to be involved in illicit endeavours. This includes the authority to directly retrieve such assets from exchanges and custodian wallet providers.

Furthermore, authorities will be empowered to dispose of seized assets, typically by transferring them to a designated 'burn wallet.' The primary objective of this legislation is to improve the NCA's capabilities in combating various crimes associated with cryptocurrency, such as cybercrime, scams, and drug trafficking. In essence, it aims to address concerns that conventional legal procedures may prove insufficient in cases where involved individuals are located overseas and evade conviction. According to Yahoo, although questions have been raised regarding the efficacy of these measures, the UK government remains steadfast in its commitment to expanding the regulatory framework surrounding cryptocurrencies.

Plans are underway to introduce new laws within the next six months concerning stablecoins and crypto staking practices. The UK government’s crypto regulation plans In February 2023, the UK government announced its intention to implement comprehensive regulation on crypto asset activities. This move followed a series of notable scandals within the crypto market, prompting increased regulatory efforts worldwide.

At the time, the Economic Secretary to the Treasury outlined the government's ambitious plans to regulate crypto asset activities, which include imposing stricter rules on crypto trading platforms and introducing a new framework for crypto lending. The proposed regulations aimed to hold crypto trading venues accountable for defining detailed content requirements for admission and disclosure documents, with the overarching objective of ensuring fair and transparent standards across crypto exchanges. Additionally, the proposals aimed to enhance regulations governing financial intermediaries and custodians in the crypto space.

The proposed regulatory framework is designed to enhance consumer protection and ensure that promotions related to crypto assets adhere to standards equivalent to those governing promotions of financial services products with similar risk profiles. .