Proceeds of Crime Act 2002

[F1 303Z36 Application for crypto wallet freezing order U.K.

(1) This section applies if an enforcement officer has reasonable grounds for suspecting that cryptoassets held in a crypto wallet administered by a UK-connected cryptoasset service provider—

(a) are recoverable property, or

(b) are intended by any person for use in unlawful conduct.

(2) Where this section applies (but subject to subsection (3)) the enforcement officer may apply to the relevant court for a crypto wallet freezing order in relation to the crypto wallet in which the cryptoassets are held.

(3) An enforcement officer may not apply for a crypto wallet freezing order unless the officer is a senior officer or is authorised to do so by a senior officer.

(4) For the purposes of this Chapter—

(a) a crypto wallet freezing order is an order that, subject to any exclusions (see section 303Z39), prohibits each person by or for whom the crypto wallet to which the order applies is administered from—

(i) making withdrawals or payments from the crypto wallet, or

(ii) using the crypto wallet in any other way;

(b) a crypto wallet is administered by or for a person if the person is the person to whom services are being provided by a cryptoasset service provider in relation to that crypto wallet.

(5) An application for a crypto wallet freezing order may be made without notice if the circumstances of the case are such that notice of the application would prejudice the taking of any steps under this Part to forfeit cryptoassets that are recoverable property or intended by any person for use in unlawful conduct.

(6) An application for a crypto wallet freezing order under this section may be combined with an application for an account freezing order under section 303Z1 where a single entity—

(a) is both a relevant financial institution for the purposes of section 303Z1 and a cryptoasset service provider for the purposes of this section, and

(b) operates or administers, for the same person, both an account holding money (above the minimum amount specified in section 303Z8) and a crypto wallet.

(7) An application for a crypto wallet freezing order may not be made by an SFO officer, or an accredited financial investigator, in relation to a UK-connected cryptoasset service provider where—

(a) the provider has its registered office, or if it does not have one, its head office in Scotland, and

(b) the day-to-day management of the provider’s business is the responsibility of that office or another establishment maintained by it in Scotland.

(8) In this Chapter—

• “enforcement officer” has the meaning given by section 303Z20;

• “relevant court” means—

  (a)

  in England and Wales and Northern Ireland, a magistrates’ court, and

  (b)

  in Scotland, the sheriff;

• “senior officer” has the meaning given by section 303Z20;

• “UK-connected cryptoasset service provider” means a cryptoasset service provider which—

  (a)

  is acting in the course of business carried on by it in the United Kingdom,

  (b)

  has terms and conditions with the persons to whom it provides services which provide for a legal dispute to be litigated in the courts of a part of the United Kingdom,

  (c)

  holds, in the United Kingdom, any data relating to the persons to whom it provides services, or

  (d)

  meets the condition in subsection (9).

(9) The condition in this subsection is that—

(a) the cryptoasset service provider has its registered office, or if it does not have one, its head office in the United Kingdom, and

(b) the day-to-day management of the provider’s business is the responsibility of that office or another establishment maintained by it in the United Kingdom.]

Textual Amendments

F1 Pt. 5 Chs. 3C-3F inserted (26.10.2023 for specified purposes, 26.4.2024 for S. for specified purposes, 26.4.2024 for E.W.N.I. in so far as not already in force) by Economic Crime and Corporate Transparency Act 2023 (c. 56), s. 219(1)(2)(b)(c), Sch. 9 para. 1; S.I. 2024/269, reg. 4(b)(i)(ii)