Scotland has enacted a new law giving major powers to the police in order to curb money laundering or illicit crypto holdings.
According to local media reports, Scotland saw the implementation of new powers yesterday that enable police to confiscate cryptocurrency and other comparable assets that have been unlawfully acquired by criminals or are being used to conceal or launder the proceeds of their operations.
New Measures Come As UK Sees Heightened Crypto Regulations
The new measures are in tandem with multiple steps that the UK government is taking to curb the illegal use of crypto and subsequent money laundering.
The police and other law enforcement officials will have the authority to seize and request that the court detain crypto assets and related items under these new measures. The court has the authority to order the forfeiture of the underlying crypto assets and their conversion into cash if it is convinced that they are the result of illegal activity or are meant to be used in illegal activity.
In order to facilitate the recovery of cryptoassets under the Proceeds of Crime Act 2002 (POCA), these new regulations were first implemented in England earlier this year.
According to local media, law enforcement officials will greatly benefit from these new powers and other provisions since they will expand the range of situations in which they can use their seizure authority to seize cryptocurrency and other comparable assets. This will make it easier for courts to seize crypto assets before they are spread by people who either obtained them illegally or use them to cover up illicit activity.
Scotland’s New Laws Come As UK Sees Rise In Crypto Use
In recent years, the crypto assets industry has grown astronomically both internationally and in the UK. According to an FCA survey, 10% of UK adults are thought to own some kind of cryptocurrency, making the UK one of the largest markets for these assets.
This number is on a constant rise, given that the United Kingdom, including Scotland has been a hub of crypto innovation. At present, because the UK has permitted cryptocurrency use since its inception, Scotland is regarded as a crypto-friendly nation.
On the other hand, the industry has also experienced a great deal of volatility and uncertainty because the prices of cryptocurrency assets change quickly and without warning due to a number of factors, including supply and demand, technological advancements, changes in regulations, and cyberattacks.
Due to this, it is important for governments to ensure that there is proper regulation in place to halt illicit crypto activities.