Queensland law enforcement agency calls for more powers to seize crypto

The Crime and Corruption Commission (CCC) in Queensland, Australia, discovered loopholes in the current state laws that make it easier for criminals to misuse digital assets.

The agency suggests updating Queensland’s law for seizing assets to address its current limitations.

The CCC raised doubts about the ability of Queensland’s Criminal Proceeds Confiscation Act 2002 (CPCA) to successfully seize cryptocurrencies linked to criminal activities, like money laundering.

The Commission proposed major changes to the Act aimed at achieving seven key objectives, among which are enhancing the capability to effectively seize digital assets, as follows:

“Digital assets are expected to continue to proliferate as the criminal environment increasingly becomes less physical, and the CPCA less effective for dealing with digital assets.”

In simpler terms, the CCC believes that the absence of terms like “cryptocurrency,” “crypto asset,” and “digital asset” in Queensland’s Consumer Protection Act (CPCA) is causing inconsistencies and gaps in the law.

To keep up with the evolving nature of criminal justice, it’s crucial that the work of the Criminal Procedures and Courts Act (CPCA) remains relevant. The Commission emphasized this point by stating:

“While digital assets can be restrained and forfeited under the CPCA, there are currently no specific provisions for investigative agencies in Queensland to facilitate effective seizure of digital assets.”

The CCC identifies the inability to obtain digital assets as an obstacle to collecting evidence, determining ownership, and managing their storage and transfer in Queensland.

The Commission proposed changes including clarifying what constitutes “digital assets” and applying money laundering regulations to them, converting confiscated assets into stable currencies during legal proceedings, and enforcing forfeitures automatically.

In March, Alan Kirkland, the head of the Australian Securities and Investments Commission (ASIC), announced a plan to promote the growth of financially responsible innovations.

Queensland law enforcement agency calls for more powers to seize crypto

Kirkland emphasized the importance of addressing the “triple challenge” in financial regulations. This involves ensuring consumer safety, maintaining market fairness, and fostering financial advancements.

According to Kirkland, ASIC’s strategy for fostering innovation and proper regulation could lessen the risks and make digital assets more accessible to a larger audience.

Read More

2024-04-10 15:51