The UK Insolvency Service, tasked with recovering assets for creditors in insolvency cases, has appointed its first specialist in cryptocurrency intelligence. This move aims to improve the tracing of cryptocurrencies as they become increasingly common. Andrew Small, a former police investigator, will fill this role, primarily focusing on cases involving criminal activity.
Over the past five years, there has been a significant increase in cases where cryptocurrency has been identified as a recoverable asset, with a 420% rise to 59 cases and an estimated value jump of 364 times to approximately £520,000 ($700,000). Small noted, 'Cryptocurrency is indeed a recoverable asset, and my role will support the agency by providing specialized knowledge about various crypto assets and the associated technologies used for transactions and storage.' The UK has been strengthening its cryptocurrency framework amidst the growing popularity of digital assets.
According to research by the Financial Conduct Authority, the number of UK residents holding cryptocurrency increased from 2.2 million in 2021 to 7 million in 2024. The country has also been releasing draft legislation and consultations to establish a comprehensive crypto regime.