The UK Insolvency Service has appointed its inaugural cryptocurrency intelligence expert to assist in recovering digital currencies from bankruptcy and criminal proceedings.
Andrew Small, a prior police investigator with expertise in financial crime, will spearhead initiatives to trace and reclaim digital assets that remain unaccounted for in these cases, as stated in a June 9 announcement from the Insolvency Service.
This development arises as the quantity of cryptocurrency-related insolvency cases in the UK surged by 420% over the preceding five years, while the estimated worth of digital assets identified in insolvency matters has escalated 364 times to 523,580 British pounds ($709,500) during the same period.
“There has been a swift increase in crypto ownership in the UK, and along with that, we’ve witnessed a corresponding rise in cryptocurrency ownership in bankruptcy situations,” remarked Small, emphasizing that digital currencies are “definitely a recoverable asset.”
Recovery efforts will target everything from Bitcoin to memecoins and NFTs
The Insolvency Service is entrusted with the responsibility of tracing and recuperating funds and assets from individuals or enterprises involved in insolvency proceedings, aiming to return as much of the funds owed to creditors as feasible.
Small indicated that his role would involve imparting specialized knowledge regarding the variety of cryptocurrencies available and the technology related to their purchase, sale, and storage.
The Insolvency Service noted that this could encompass anything from Bitcoin (BTC) and Ether (ETH) to memecoins such as Dogecoin (DOGE) and non-fungible token artworks.
Related: UK shuts down ‘trust me bro’ crypto firm that provided poor advice to clients
Neil Freebury, head of intelligence at the Insolvency Service, anticipates that Small’s appointment will bolster collaboration and improve outcomes for investigators handling cryptocurrency ownership cases.
“His appointment will assist our investigators dealing with situations where cryptocurrency ownership is a consideration.”
Rise of cryptocurrency ownership in the UK
A report from the UK’s Financial Conduct Authority last November revealed that 12% of UK adults possessed cryptocurrencies in 2024 — a notable rise from the 4% recorded in 2021.
They maintain an average value of roughly 1,842 British pounds ($2,496).
UK to mandate crypto companies report every customer transaction
The heightened initiatives to reclaim crypto from bankruptcy situations unfold amidst a wider movement in the UK towards stricter regulation of the cryptocurrency sector.
UK cryptocurrency firms will be required to gather and report data on every customer transaction commencing January 1, 2026, as part of a broader effort to enhance crypto tax reporting, according to the UK revenue and customs department last month.
All details including the user’s full name, residential address, and tax identification number will be required to be collected and reported for each transaction, encompassing the cryptocurrency utilized and the amount transacted.
This new regulation is part of the UK’s implementation of the Organisation for Economic Development’s Cryptoasset Reporting Framework aimed at improving transparency in crypto tax reporting.
Magazine: AI cures blindness, ‘good’ propaganda bots, OpenAI doomsday bunker: AI Eye
