SFO and HMRC approach crypto asset regulation

Gherson Solicitors LLP has successfully filed Freedom of Information Requests to the Serious Fraud Office and HM Revenue and Customs to gather information on the use of Crypto Wallet Freezing Orders and Crypto Wallet Forfeiture Orders since their introduction in April 2024. While the SFO acknowledged it has neither sought nor obtained any CWFrOs or CWFOs, HMRC reported a modest use of both orders, stating it had sought less than five in the years 2024-2025 and 2025-2026. However, HMRC could not provide specific numbers for confidentiality reasons surrounding the individuals involved.

Thomas Cattee, partner and head of the White-Collar Crime department at Gherson Solicitors commented on the findings, “Though the numbers are small, or in the case of the SFO non-existent, they are striking.” He expressed concern that despite the SFO’s Business Plan 2025-26, which highlights the development of expertise in tackling crypto-assets, the regulator has yet to explore these orders, leaving HMRC as the more proactive agency in this realm.

In December 2024, Gherson submitted a further FOI request to the SFO regarding its usage of Account Freezing Orders. When comparing the SFO's and HMRC's applications of these orders, Cattee noted, “We had previously noted that by its nature, the SFO only investigates a few large and complex cases. This could be one of the reasons that the number of CWFrOs and CWFOs used by the SFO is currently nil. HMRC, on the other hand, conducts many more small and domestic investigations which could be the reason for its slightly increased use of these.”

He concluded with a thought-provoking remark, “These results could also reflect the fact that HMRC has been more willing to react to technological changes. It would be interesting to establish how many of these have been obtained by the National Crime Agency, however not being subject to FOI laws we must wait for them to publish their figures.” The contrasting strategies of these agencies may have significant implications for future regulatory practices involving cryptocurrencies in the UK.