Queensland Calls for Crypto Confiscation Powers to Fight Crime

Queensland Crypto Confiscation: Queensland’s Crime and Corruption Commission (CCC) has proposed significant reforms to the state’s legislative framework. The aim is to grant authorities the power to effectively seize digital assets like cryptocurrencies, valued in Queensland at an estimated AUD $10 billion according to a recent report by Blockchain Australia.

Currently, Queensland lacks the legal muscle to confiscate crypto assets during criminal investigations. This hinders the state’s ability to gather evidence, establish ownership of seized digital assets, valued globally at over USD $1 trillion, and manage their storage and transfers.

The CCC recommends several reforms to address these shortcomings. These include providing a clear definition for “digital assets” and incorporating them into Queensland’s money laundering laws.

Additionally, the commission suggests converting seized crypto assets into stablecoins, a type of cryptocurrency pegged to a fiat currency like the Australian dollar, during legal proceedings and implementing automatic forfeitures.

Countries Look to Crypto Seizures for Tax Collection

Queensland’s proposal comes amidst a global trend of countries exploring crypto asset confiscation for tax collection purposes.

South Korea recently revealed plans to seize crypto holdings from an estimated 5,208 residents who haven’t paid local taxes, with the total value of seized assets reaching nearly USD $29 million in 2023.

Similarly, Spain’s Ministry of Finance is working on legislative reforms to grant its tax agency the authority to seize crypto assets from tax-delinquent individuals.

Queensland’s CCC believes that modernizing confiscation laws is essential to combat crimes involving digital assets. By granting authorities the power to seize crypto assets, the state can better investigate and prosecute criminal activity in the evolving digital landscape.

Key Takeaways of Crypto Confiscation

• Queensland CCC proposes CPCA update to seize crypto for fighting crime.
• Cryptocurrencies worth an estimated AUD $10 billion targeted.
• Current laws make gathering evidence, ownership & asset management difficult.
• CCC recommends defining “digital assets” & including them in money laundering laws.
• Converting seized crypto to stablecoins & automatic forfeitures for criminal activity also proposed.
• Queensland’s move aligns with a global trend of crypto confiscation.

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