Coin WorldSaturday, Jul 5, 2025 9:06 am ET

2min read

Sweden has expanded its powers to seize cryptocurrency assets, even in cases where no specific crime has been proven, as long as the owner cannot explain the source of the funds. This new legislation, which took effect in November last year, targets unexplained wealth and grants enforcement agencies broader authority to act against suspected criminal assets. Since its implementation, over $8 million worth of assets have been confiscated under this law.

Justice Minister Gunnar Strömmer has urged law enforcement agencies, including the tax agency, to intensify their efforts in seizing illegal assets, particularly high-value digital assets suspected of being linked to criminal activities. This directive removes the previous requirement to prove a specific offense, allowing authorities to confiscate cryptocurrency if individuals cannot provide a legitimate explanation for its origin. The focus is on assets with high profit margins, and the directive emphasizes the need for enhanced coordination among the Police Authority, Tax Agency, and Enforcement Authority to increase joint operations.

This legislation is one of the most comprehensive seizure laws in Europe, as it extends beyond adult suspects to include minors and individuals with severe mental disorders. Sweden aims to reduce financial incentives for criminal networks by tightening control over unexplained wealth. The move comes amid growing concerns about the role of cryptocurrencies in crime, with some exchanges recently linked to money laundering activities. A report noted that drug dealers and money launderers often use digital assets to conceal profits, prompting law enforcement agencies to expand their presence on crypto platforms to track suspicious activity and identify illicit providers.

In addition to the seizure efforts, lawmakers in Sweden are discussing the creation of a national Bitcoin reserve. Some support the idea of redirecting seized crypto to the central bank, which would give Sweden a strategic holding of Bitcoin, aligning with moves seen in other countries. However, the Justice Ministry has not confirmed any formal policy on how seized crypto will be managed, and specific plans for seized digital assets remain undisclosed.

Sweden's intensified efforts to seize crypto assets are part of a broader strategy to combat financial crimes and ensure that illicitly obtained assets do not remain in circulation. The use of forfeiture legislation allows authorities to seize assets suspected to have been obtained through illegal means, even if the owner cannot be definitively identified. This approach is crucial in the context of cryptocurrencies, where the anonymity of transactions can make it difficult to trace the origin of funds. The directive from the Justice Ministry underscores the growing concern over the use of cryptocurrencies in criminal activities and highlights the importance of collaboration between different law enforcement agencies to more effectively identify and seize illicit crypto assets.

In 2024, over 60,000 people were reportedly linked to criminal networks in Sweden, generating large profits often through crypto channels. With the new law, Sweden seeks to dismantle these financial structures before assets can be laundered or moved offshore. Authorities now operate with wider powers and clearer directives, focusing on stopping financial crime at the source and increasing asset recovery rates across the country. This proactive approach is expected to have a deterrent effect on potential criminals, making it clear that Sweden is committed to enforcing its laws against financial crimes. The move by Sweden to expand its crypto seizures sets an example for other nations grappling with similar issues, demonstrating the importance of robust enforcement measures in combating financial crimes.