The Crime and Corruption Commission (CCC), a law enforcement agency in Queensland, Australia, has identified certain loopholes in state laws that facilitate criminal use of digital assets.
To address these legal deficiencies, the agency has proposed a modernization of Queensland’s asset confiscation system.
The CCC has raised concerns about the effectiveness of Queensland’s Criminal Proceeds Confiscation Act 2002 (CPCA) in confiscating cryptocurrencies associated with organized crimes, such as money laundering.
The commission has called for a significant overhaul of the Act, with a focus on achieving seven priority outcomes, three of which directly relate to the efficient seizure of digital assets. The CCC stated:
“The absence of crypto-related terminology in the CPCA, such as cryptocurrency, crypto asset, or digital asset, is the main reason for the gaps in Queensland’s legislative framework.”
Highlighting the importance of adapting the CPCA to the evolving criminal landscape, the commission further stated:
“The CCC views the inability to seize digital assets as a hindrance to Queensland’s capability to gather evidence, establish ownership of digital assets, and facilitate the storage or transfer of such assets, among other things.”
The commission has recommended several reforms, including defining “digital assets” and incorporating them into money laundering laws, converting seized assets into stable currencies during legal proceedings, and implementing automatic forfeitures.
In a related development, Alan Kirkland, commissioner of the Australian Securities and Investments Commission (ASIC), unveiled a strategy in March to foster responsible development of financial innovations.
Kirkland emphasized the need to address the “regulatory trilemma” associated with financial innovations, which involves safeguarding consumers, ensuring market integrity, and encouraging financial innovation.
He believes that ASIC’s approach to innovation and effective regulation can mitigate associated risks and promote the widespread adoption of digital assets.
Source: ASIC Media