Australia-based Crime and Corruption Commission (CCC) has called for reform of Queensland’s Criminal Proceeds Confiscation Act 2002 (CPCA) to counter the illicit use of cryptos.
The agency has suggested updating Queensland’s asset confiscation laws to address these legal weaknesses.
When seizing cryptocurrencies connected to organized crime, such as money laundering, the CCC questioned the effectiveness of Queensland’s Criminal Proceeds Confiscation Act 2002 (CPCA).
Three of the seven key outcomes that the Commission called for substantial change of the Act directly pertain to the effective seizure of digital assets. It stated:
“Digital assets are expected to continue to proliferate as the criminal environment increasingly becomes less physical, and the CPCA less effective for dealing with digital assets.”
The CCC claims that the main reason for the gaps in Queensland’s legal system is the absence of any mention of cryptocurrencies, crypto assets, or digital assets in the CPCA.
Noting that the CPCA must continue to be effective in light of the evolving criminal justice landscape, the Commission further stated:
“While digital assets can be restrained and forfeited under the CPCA, there are currently no specific provisions for investigative agencies in Queensland to facilitate effective seizure of digital assets.”
In addition, the CCC believes Queensland’s inability to seize digital assets makes it more difficult for the state to obtain information, establish who owns a digital asset, or make it easier for people to store or transfer digital assets.
The Commission suggested changes, including classifying “digital assets” and including them in money laundering regulations, as well as automatic forfeitures and converting seized assets into stable currencies while legal action is pending.
The Australian Securities and Investments Commission (ASIC) Commissioner, Alan Kirkland, launched a plan in March to promote responsible financial innovation growth.
Regarding financial advances, Kirkland emphasized the necessity to resolve the “regulatory trilemma,” which entails promoting financial innovation, protecting consumers, and maintaining market integrity.
Kirkland thinks that ASIC’s innovative approach and sensible regulation can lessen the hazards involved and aid in the public promotion of digital assets.
