MoJ Implements Procedures for Crypto Asset Seizure Appeals in Crown Court

Crown Court Now Equipped to Handle Crypto Asset Seizure Challenges

On December 2, 2024, the Ministry of Justice (MoJ) implemented the Crown Court (Amendment No. 2) Rules 2024, introducing specific procedures for the Crown Court to handle appeals against magistrates' court orders related to the seizure and forfeiture of crypto assets.

This development aligns with recent legislative changes aimed at enhancing the legal framework surrounding digital assets.

Legislative Background

The Proceeds of Crime Act 2002 (POCA) and the Anti-terrorism, Crime and Security Act 2001 (ATCSA) are key legislation in the UK's efforts to combat financial crime and terrorism.

Historically, these statutes addressed the confiscation of tangible assets linked to criminal or terrorist activities. However, the rapid emergence of crypto assets, such as Bitcoin, necessitated updates to these laws to effectively target digital forms of illicit property.

In response, the Economic Crime and Corporate Transparency Act 2023 introduced amendments to both POCA and ATCSA, empowering authorities to seize and forfeit crypto assets involved in criminal or terrorist activities.

These amendments expanded the scope of asset recovery to include digital currencies, ensuring that the legal system keeps pace with technological advancements.

Procedural Enhancements

The recent amendments to POCA and ATCSA enabled magistrates' courts to issue seizure and forfeiture orders for crypto assets. Recognising the necessity for a clear appellate process, the MoJ introduced the Crown Court (Amendment No. 2) Rules 2024.

The Crown Court (Amendment) Rules 2024

These Rules amend the Crown Court Rules 1982, S.I. 1982/1109, as follows:rule 2 is amended to include definitions relevant to new rules 5B, 11A and 11B.new rule 5B is added to provide for the exercise of the Crown Court’s power in civil proceedings to give a live link direction.new rule 5C is added to provide for the exercise of the Crown Court’s power in civil proceedings to facilitate the giving of evidence by a witness by any of the means listed in the rule.new rules 11A to 11C are added to accommodate the provision for appeal to the Crown Court in civil proceedings under the Domestic Abuse Act 2021, the principal sections of which Act supplemented by these Rules are:sections 46 and 47, which provide for appeal to the Crown Court from the decision of a magistrates’ court on an application under section 28 for a domestic abuse protection order and on an application under section 44 to vary or discharge such an order. An appeal may be brought by the person for whose protection the domestic abuse protection order was sought, by the defendant against whom an order was made, or by the relevant chief officer of police (as defined by the Act).section 49, which allows the court to direct the same special measures for witnesses under the Youth Justice and Criminal Evidence Act 1999 as can be directed under that Act in criminal proceedings.rule 28 is replaced to align the provision for service of documents with the corresponding provision in civil proceedings in magistrates’ courts.rules 29, 30, 31, 32 and 33 are replaced with rules about access to Crown Court records in civil proceedings and publication of information about court hearings in such proceedings.rules which refer to other legislation now superseded are amended.rules superseded by Criminal Procedure Rules are omitted.

These rules amend the Crown Court Rules 1982, establishing detailed procedures for appeals against magistrates' court decisions concerning crypto asset seisures and forfeitures.

Key aspects of the new rules include:

• Appeal Initiation: Defendants or interested parties can file an appeal in the Crown Court against a magistrates' court order for the seizure or forfeiture of crypto assets.
• Documentation Requirements: The rules specify the necessary documentation and information that must accompany an appeal, ensuring that the Crown Court has comprehensive details to assess the case.
• Timelines: Clear deadlines are established for filing appeals and submitting supporting documents, promoting efficiency and timely resolution of cases.
• Hearing Procedures: The rules outline how appeal hearings should be conducted, including provisions for presenting evidence and legal arguments.

Updates on procedure rules and forms for civil proceedings in magistrates’ courts and the Crown Court

Latest information about procedures rules for magistrates’ courts and the Crown Court not replaced by the Criminal or Family Procedure Rules.

GOV.UKMinistry of Justice