28-2-2025 – UK’s parliament is deliberating a groundbreaking Crime and Policing Bill that would dramatically enhance authorities’ grip on cryptocurrency-linked criminal proceeds. The legislation, now in its second Commons reading, marks a watershed moment in Britain’s approach to digital asset enforcement.
At the heart of the proposed reforms lies an expansion of the Crown Court’s jurisdiction, empowering judges to issue more robust confiscation orders. The measure introduces novel mechanisms for asset recovery and establishes protocols for valuing destroyed cryptocurrency holdings in cases where conventional liquidation proves impossible.
Shadow Home Secretary Yvette Cooper’s office has championed the initiative as a vital tool in the criminal justice arsenal. The legislation builds upon last year’s Economic Crime and Corporate Transparency Act, which first established the framework for cryptocurrency freezing orders.
The timing proves particularly pertinent, as Britain grapples with its unwanted distinction as a notable hub for cryptocurrency-related fraud. Recent data suggests the nation accounts for 7% of global crypto scams documented between January 2022 and October 2024.
The Financial Conduct Authority (FCA) has already demonstrated its muscular approach to enforcement. December 2024 saw the regulator block access to Pump.fun, citing the platform’s failure to secure proper authorisation. The watchdog simultaneously unveiled proposals to ban public cryptocurrency offerings from unregulated entities, signalling a decisive shift towards stricter oversight.
Treasury movements suggest an even more comprehensive regulatory landscape on the horizon. Economic Secretary Tulip Siddiq revealed plans in November 2024 to unite stablecoin and staking service regulations under one umbrella, departing from the previous classification of stablecoins under payment services rules.
However, Britain’s measured pace towards regulation has not gone unnoticed. With the European Union’s Markets in Crypto Assets (MiCA) regulation already operational and attracting firms to Continental shores, some industry observers express concern about the UK potentially losing its competitive edge in the digital asset sphere.
The legislation emerges against a backdrop of intensifying global competition for cryptocurrency business, with American regulators similarly positioning themselves to attract digital asset enterprises. Yet Britain’s proposed measures reflect a delicate balance between fostering innovation and fortifying defences against financial wrongdoing.
When implemented, the new powers are expected to significantly reshape Britain’s cryptocurrency landscape, with full regulatory infrastructure anticipated by 2026. The FCA’s heightened focus on information sharing and compliance protocols underscores a broader governmental commitment to modernising financial crime prevention in the digital age.
This legislative push represents the latest chapter in Britain’s evolving relationship with digital assets since 2020, when the FCA first began actively monitoring anti-money laundering compliance in the sector. The Crime and Policing Bill now stands poised to usher in a new era of cryptocurrency oversight in British financial markets.
