Sweden Imposes Seizure of Crypto Without Proof of Crime in New Crackdown Sweden launched one of the strongest anti-crypto initiatives in Europe aimed at unexplained cryptocurrency holdings, empowering authorities to seize crypto without proof of crime. On July 4th, Decrypt reported that Justice Minister Gunnar Strömmer formally directed police, taxmen, and the state Enforcement Authority to step up the seizure of crypto holdings. The move comes after a law was passed in November 2023 making confiscation of digital assets lawful if their owners are unable to account for its origin—without accusations of any offense. Over $8.4 million in assets has already been seized by authorities through the law. Strömmer underscored how much better agencies can coordinate efforts when they conduct investigations into wealth tied to crypto by saying it’s “time to turn up the pressure.” Why Sweden Is Ramping Up Crypto Enforcement The operation comes on the heels of mounting concern regarding cryptocurrency activity in Sweden’s illegal economy. In a report released in September 2024 jointly by Sweden’s Police Authority and Financial Intelligence Unit, money laundering sites for groups involved in drug trafficking and fraud were exposed by certain crypto exchanges. The report urged authorities to increase their presence on crypto sites in order to disrupt illicit finance streams. With an estimated 62,000 participants in organized crime activity discovered within Sweden, cryptocurrencies have become a strategic focus due to their anonymity and borderless nature. Seized Bitcoin: Future Asset or Legal Limbo? The support also extends to Parliament. Sweden Democrat Dennis Dioukarev, who became newsworthy for demanding a national Bitcoin reserve, has proposed redirects seized crypto—especially Bitcoin—to Sweden’s central bank, the Riksbank. “Money taken from criminals would make Sweden financially stronger,” Dioukarev demanded. Yet the government has not indicated what it will do with the crypto it seizes from criminals. Strömmer’s office would not comment on whether such assets will be sold, retained, or added to a national reserve—leaving the fate of seized holdings uncertain. A New Digital Asset Era for Swedish Law Sweden’s move is a paradigm shift in how governments could address mysterious wealth in the era of crypto. While the policy has ignited privacy and due process concerns, authorities see the move as necessary to stay one step ahead of evolving financial crime. As more governments grapple with controlling virtual assets, Sweden’s controversial model could become a European—and world—blueprint.
