Queensland Agency Urges Expanded Crypto Seizure Powers

The Crime and Corruption Commission (CCC) in Queensland, Australia has identified gaps in state laws that allow criminals to exploit digital assets. To address this issue, the agency has proposed modernizing Queensland’s asset confiscation regime. The CCC has raised concerns about the effectiveness of Queensland’s Criminal Proceeds Confiscation Act 2002 (CPCA) in confiscating cryptocurrencies involved in organized crime, such as money laundering.

The CCC is calling for significant reform of the CPCA, with a focus on seven priority outcomes, three of which relate directly to the seizure of digital assets. The agency argues that the lack of crypto-related language in the CPCA is the root cause of the legislative gaps. The CCC emphasizes that as digital assets become more prevalent in criminal activities, the CPCA becomes less effective in dealing with them.

As it stands, there are no specific provisions in Queensland’s laws to facilitate the effective seizure of digital assets by investigative agencies. This impedes the collection of evidence, determination of asset ownership, and the storage or transfer of digital assets. The CCC suggests several reforms to address these issues, such as defining “digital assets” and incorporating them into money laundering laws. It also proposes converting seized assets into stable currencies during legal proceedings and implementing automatic forfeitures.

In March, Alan Kirkland, Commissioner of the Australian Securities and Investments Commission (ASIC), introduced a strategy to promote responsible financial innovation. Kirkland highlighted the need to address the “regulatory trilemma” in financial innovations, which involves balancing consumer protection, market integrity, and the encouragement of financial innovation. He believes that ASIC’s innovative and effective regulatory approach can mitigate risks and support the widespread adoption of digital assets.

The CCC has identified gaps in Queensland’s laws that enable criminals to exploit digital assets, and it has proposed reforms to modernize the asset confiscation regime. By defining digital assets, updating money laundering laws, and introducing new seizure mechanisms, the CCC aims to enhance the state’s ability to combat organized crime involving cryptocurrencies. The efforts align with ASIC’s strategy to foster responsible financial innovation and establish effective regulations that promote the use of digital assets.