CCC of Queensland seeks to modernize confiscation laws in order to facilitate the “effective” seizure of crypto assets

The Crime and Corruption Commission (CCC) of Queensland has recommended updating the state’s laws regarding the acquisition of digital assets due to loopholes that unintentionally promote their illegal usage.

The CCC issued a 54-page study expressing their disapproval of the efficacy of the Criminal Proceeds Confiscation Act 2002 (CPCA) in confiscating digital currencies associated with transnational criminal rings, including money laundering.

The commission’s answer was to demand major changes to the statute, with seven main goals—three of which deal with the need for actual confiscation of digital assets themselves.

The CCC brought attention to the fact that digital assets are becoming more common in criminal activity and that existing laws are inadequate to cope with this new kind of crime.

“Given the shrinking physical footprint of organized crime and the CPCA’s ineffectiveness un combating digital assets, the proliferation of digital assets is likely to persist.”

The CCC stressed that the CPCA needed an update so it could adapt to the new criminal landscape and continue to be successful.

Currently, investigative authorities in Queensland are not equipped with the necessary legal framework to properly seize digital assets.

Queensland has difficulties in gathering evidence, establishing ownership, and managing the storage and transfers of digital assets due to its inability to seize such assets.

Among the many changes proposed by the CCC to deal with these problems was the inclusion of a definition of “digital assets” within anti-money-laundering legislation.

In addition, the group recommended automating forfeitures and changing confiscated assets into stable currencies while cases are pending in court.

Relatedly, ASIC Commissioner Alan Kirkland has just presented a plan to encourage ethical financial innovation.

Kirkland brought attention to the “regulatory trilemma” that arises when promoting financial innovation while simultaneously protecting consumers and maintaining market integrity.

In his view, the Australian Securities and Investments Commission (ASIC) can reduce risks and accelerate the adoption of digital assets via its innovative and regulatory policies.

The idea of seizing cryptocurrency assets as collateral for tax debt is gaining traction in several nations. Authorities in the South Korean city of Pohang have just announced their intention to confiscate cryptocurrency from 5,208 individuals who have evaded payment of municipal taxes.

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