Key Takeaways
- The UK has appointed a crypto specialist to help recover online assets, such as Bitcoin, from bankruptcy cases involving insolvencies as the number of cases rises.
- This move follows a 420% increase in bankruptcy cases where digital assets have been identified as recoverable assets.
- Andrew Small, a former police investigator with experience in economic crime, will assist the Insolvency Service in tracing, assessing, and recovering crypto assets.
The UK Insolvency Service has appointed a dedicated cryptocurrency intelligence specialist to help recover cryptocurrencies, such as Bitcoin, for the UK economy in criminal and bankruptcy cases.
According to a statement from the Insolvency Service, Andrew Small, a former police investigator with a background in economic crime, will head the program of tracing and reclaiming cryptocurrencies that may not have been accounted for during legal proceedings.
A Rapid Rise in Crypto Ownership
The decision to hire the first-ever crypto intelligence specialist comes amid a 420% rise in insolvency cases over the last five years. During this time, the estimated value of cryptocurrencies in insolvency cases surged over 364 times to over $710,000 during the same time frame. Commenting on the development, Andrew Small said:
“There has been a rapid rise in crypto ownership in the UK, and alongside that, we’ve seen a similar rise in crypto asset ownership in bankruptcy cases […] the Insolvency Service has a duty to trace and recover money and assets from individuals or companies in insolvency cases, and we work to return as much money owed to creditors as possible.”
Provide Expertise in Crypto Assets
According to the statement from the Insolvency Service, the department will trace and recover money and cryptocurrency assets from individuals or businesses in bankruptcy cases, helping to return as much of the owed funds to creditors as possible. The role of the crypto intelligence specialist will entail providing expertise about the types of digital assets involved and the available technology required to buy, sell, or hold them.
While Small will support all insolvency proceedings involving cryptocurrency, his role will focus heavily on criminal cases, where digital assets are often used to conceal or transfer funds. Andrew Small explained:
“Crypto is very much a recoverable asset, and my role will help the agency by providing specialist knowledge about the types of crypto assets available and the associated technology used to buy, sell, and store them.”
Help Investigators Dealing with Crypto Ownership
The Insolvency Service stated that this could include all types of digital assets, such as Bitcoin, Ether, or meme coins like Dogecoin, as well as non-fungible tokens (NFTs). Neil Freebury, the head of intelligence at the UK Insolvency Service, said he expected Small’s appointment to enhance collaboration and strengthen outcomes for investigators working on crypto asset ownership cases. Freebury stated:
“His appointment will help our investigators dealing with cases where crypto asset ownership is a factor.”
Conclusion
The appointment of a crypto intelligence specialist highlights the UK government’s increased efforts to retrieve crypto assets and regulate the cryptocurrency industry. Beginning January 1, 2026, UK-based crypto companies will be required to collect and report all customer data as part of a broad effort to enhance crypto tax reporting by the UK Revenue and Customs Department. The new regulations are part of the UK’s integration of the Organization for Economic Co-operation and Development’s Crypto Asset Reporting Framework to improve transparency in crypto tax reporting.
Frequently Asked Questions
Is cryptocurrency regulated in the UK?
The UK lags behind the European Union (EU), from which the country withdrew in January 2020, in regulating cryptocurrency. The 27-member bloc’s landmark Markets in Crypto-Assets (MiCA) regulation took effect in full force in December 2024.
What does the UK crypto regulation bill say?
This short Bill clarifies that certain digital assets, such as cryptocurrency tokens, can be recognized as property, even if they do not fit into the two traditional categories of personal property recognized by law.
Does the UK government hold crypto?
It’s unclear how much bitcoin the UK government holds or how it stores it. Still, estimates from the data analytics firm Arkham suggest that the UK government currently has 61,245 bitcoins, which are likely the result of seizures from international money launderer Jian Wen.
