Sweden's Justice Minister Gunnar Strömmer has issued a directive to increase the seizure of crypto assets suspected of illicit ties, even without direct evidence.
Justice Minister's Directive
On July 4, Decrypt reported that Gunnar Strömmer formally called for law enforcement and tax authorities to intensify the confiscation of crypto assets linked to criminal activity. The directive is based on a law passed last November that grants authorities broad powers to seize digital assets without definitive proof of criminal conduct if owners cannot adequately explain their origins. Since its introduction, the law has been used to seize $8.4 million in property.
Reasons for Targeting Crypto
Strömmer emphasized the need for improved inter-agency coordination, particularly in dealing with high-value assets like cryptocurrencies, stating it was 'time to turn up the pressure'. A September 2024 report from Sweden's Police Authority and Financial Intelligence Unit identified that some cryptocurrency exchanges function as de facto money laundering services.
Public and Expert Reactions
A notable supporter of Strömmer's initiative is Sweden Democrat Dennis Dioukarev, who suggested that the seized crypto, particularly Bitcoin, be transferred to Sweden's central bank, Riksbank, to establish a strategic reserve. 'Confiscated cryptocurrencies should be repurposed to strengthen Sweden's financial position,' he noted. However, the government remains silent on the fate of the confiscated crypto assets.
The directive from Sweden's Justice Minister is aimed at combatting organized crime related to crypto assets, but it remains unclear what will happen to the seized assets and the potential implications for the crypto industry.
