Schedules Schedule 10 – Cryptoassets: Terrorism Part 1 – Amendments to Schedule 1 to the Anti-Terrorism, Crime and Security Act 2001 Part 4BB: Terrorist Cryptoassets: Crypto Wallet Freezing Orders
"Cryptoasset exchange provider", "custodian wallet provider", "cryptoasset service provider", "enforcement officer", "relevant court" and "UK-connected cryptoasset service provider", are all defined in new paragraph 10Z7B. This paragraph also provides that the Secretary of State may, by regulations, amend the definitions for these terms.
	Paragraphs 10Z7BA to 10Z7BE provide the powers to seek a "crypto wallet freezing order" which is exercisable by an enforcement officer (with a senior officer’s authorisation – and the senior officer must consult with the Treasury before making the application), if there are reasonable grounds to suspect that some or all of the cryptoassets held in the crypto wallet administered by a "UK-connected cryptoasset service provider" are intended for the purposes of terrorism. A crypto wallet freezing order can be made without notice if the circumstances of the case are such that any notice given of the application would prejudice the later forfeiting of terrorist cryptoassets.
	Paragraph 10Z7BA provides that an application for a crypto wallet freezing order can be combined with an application for an account freezing order, in circumstances where a single entity is both a relevant financial institution (within the meaning of 10Q of ATCSA) and maintains both cryptoassets and money for the same person.
	Paragraph 10Z7BB provides that a court may make a crypto wallet freezing order if satisfied that all or part of the assets contained in the crypto wallet constitute terrorist cryptoassets. A crypto wallet freezing order prohibits the person by, or for whom the wallet is operated, from making withdrawals or payments, and using the crypto wallet in any other way, unless permitted to do so under court-authorised exclusions. Any cryptoassets frozen in a crypto wallet will remain in the custody of the cryptoasset service provider unless the crypto wallet freezing order ceases to have effect. This paragraph also provides for a court to permit the freezing of a crypto wallet for up to two years from the date of the freezing order. It can authorise the freezing order to be further extended up to a maximum of three years if the court is satisfied that a related international request for assistance in obtaining evidence is outstanding. Any crypto wallet freezing order must provide notice to any persons affected by the freezing order, including prohibitions on withdrawals etc., as well as exceptions to the order. Some reasons for these exceptions might be, for example, for the purpose of meeting reasonable living expenses or to allow a person to carry on any trade, business, profession, or occupation.
	Paragraph 10Z7BC provides that a court may vary or set aside a crypto wallet freezing order at any time. In addition, any person affected by the decision to vary or set aside the crypto wallet freezing order, must have an opportunity to consider the implications of such an order and can make representations, if desired.
	Paragraph 10Z7BE provides that a court may stay proceedings (or in Scotland, "sist"), at any stage, once a crypto wallet freezing order is made. The court may order that the proceedings can continue on any terms it thinks appropriate.