Chancellor Rachel Reeves has unveiled bold plans to seize cryptocurrency assets linked to criminal activity, aiming to inject billions into UK public finances. The Labour government's initiative targets illicit Bitcoin holdings as part of a wider strategy to clamp down on financial crime while boosting Treasury coffers.
Crypto Crackdown Targets Dark Web Dealings
The proposed measures would empower authorities to confiscate digital currencies used in illegal transactions, particularly those associated with dark web marketplaces and ransomware attacks. Experts estimate criminal crypto holdings in Britain could exceed £5 billion.
New Powers for Law Enforcement
Under the plans:
- The National Crime Agency would receive enhanced tracking capabilities
- Specialist crypto recovery teams would be established
- New legislation would close loopholes in asset seizure laws
"We cannot allow criminals to exploit technological advances while honest taxpayers foot the bill," Reeves stated during the announcement in Westminster.
Balancing Innovation With Regulation
The move has sparked debate within the financial technology sector, with some warning it could stifle legitimate crypto innovation. However, Treasury officials insist the measures specifically target criminal holdings rather than regulated exchanges.
Industry reaction: While major exchanges have welcomed clearer regulations, privacy advocates express concerns about government overreach into digital wallets.
