- UK authorities freeze £6M in crypto since new powers in 2024.
- £1.5M frozen in Coinbase wallet linked to possible tax evasion.
- Experts predict surge in crypto freezes as UK enforces stricter laws.
UK authorities have frozen £6 million ($7.7 million) in crypto since they gained new enforcement power in April 2024. The officials froze a substantial crypto order worth £1.5 million from a Coinbase wallet. The new framework seeks to stop illegal operations such as use of digital assets for money laundering, tax evasion and funding terrorism.
New ‘Freeze’ Powers
The new powers enable the HMRC and other law enforcement agencies to freeze suspicious cryptocurrency wallets for a maximum period of three years. This allows law enforcement to stop asset transfers and finalize their investigations. The government believes freezing assets prevents criminal operations and enhances recovery of stolen funds.
On March 18, 2025, the Newcastle Upon Tyne Magistrates’ Court issued the largest single freeze order for £1.5 million. HMRC made this official request which signals possible tax evasion associated with digital assets. Online court database, Courtsdesk, shows that more freeze orders could have been issued but legal constraints restrict data access to only six months.
Reactions to UK’s New Crypto Asset Seizure Approach
Experts have expressed mixed opinions about the importance of these confiscations. Nick Barnard, a legal expert, stated that the £6 million seizure is small compared to global crypto transactions. He observed that the enforcement process started in April 2024 and its effects will take time to be seen.
Lawyer Siobhain Egan revealed that the government plans to enhance scrutiny of frozen cryptocurrency assets to prevent financial crimes. Egan pointed out the government’s proactive approach to fight money laundering and terrorism financing. She predicts a dramatic increase in the number of frozen assets in the future.
The new power allows authorities to freeze assets without prior notice to suspects which prevents transfer of these assets by criminals. Large-scale criminal investigations heavily depend upon this process. Egan explained that freezing assets enables law enforcement to prepare better cases against criminals involved in financial crimes.
The Crime and Policing Bill endorses the UK government’s measures to improve law enforcement. The proposed bill addresses cryptocurrency valuation as well as creates protocols for asset seizure and recovery. These initiatives seek to enhance the powers of the Crown Court to issue asset seizure orders to boost efficiency in law enforcement.
Global Crypto-Related Crimes
The government’s crackdown follows increased concerns about the use of digital currencies in illegal operations. Global crypto-related illegal money transfers reached £39.8 billion ($51.3 billion) in 2024. Statistics show a rise from £35.7 billion ($46.1 billion) in 2023 which indicates a growing threat of financial crimes related to digital assets.
These recent measures demonstrate the UK government’s dedication to enhance its digital assets enforcement system. Authorities aim to achieve international collaboration to tackle digital currency crimes across the world. The government’s increased enforcement approach will lead to higher asset freezes to combat crypto-related crimes.