Schedules Schedule 10 – Cryptoassets: Terrorism Part 1 – Amendments to Schedule 1 to the Anti-Terrorism, Crime and Security Act 2001 Part 4BA: Seizure and Detention of Terrorist Cryptoassets
"Cryptoassets", "crypto wallet" devices (which are used for storing cryptoassets and can function similarly to a bank account), "terrorist cryptoassets", "cryptoasset-related item" and "senior officer", are all defined in new paragraph 10Z7A. This paragraph also provides that the Secretary of State may, by regulations, amend the definitions for these terms.
	Paragraphs 10Z7AA to 10Z7AD provides for an authorised officer to seize any cryptoasset-related item found when executing a search warrant, when there are reasonable grounds for suspecting that the cryptoassets, which the items will assist them in seizing, are terrorist cryptoassets. When seizing the cryptoassets, the authorised officer can transfer the cryptoassets into a crypto wallet controlled by the authorised officer.
	Paragraph 10Z7AA provides an obligation for a person to provide electronically stored information to an authorised officer to assist in determining whether an item is likely to assist in the seizure of terrorist cryptoassets, or in enabling or facilitating their seizure. This information must be produced in a visible and legible form and is not required to be provided if it is privileged information.
	Paragraph 10Z7AE provides that where an order is made in respect of a cryptoasset-related item, the court may also make an order to detain any suspected terrorist cryptoassets that may be found as a result of information obtained from the cryptoasset-related item. This means that the detention of the cryptoassets can be authorised in advance of their seizure.
	Paragraphs 10Z7AB, 10Z7AC, 10Z7AF, and 10Z7AG provide the timelines for the initial detention of cryptoassets and/or cryptoasset-related items as 48 hours, which can be extended by a court for a period of up to six months and up to two years, provided there are reasonable grounds for suspecting that the cryptoassets are terrorist cryptoassets, and therefore continued detention is justified. A maximum of three years detention can be approved if the court is satisfied that a related international request for assistance in obtaining evidence is outstanding.
	Paragraph 10Z7AH provides that an authorised officer must arrange for any detained cryptoassets and cryptoasset-related items to be safely stored throughout the period they are detained. This includes the storage of cryptoassets in a law enforcement controlled crypto wallet.
	Paragraph 10Z7AI provides for the release of cryptoassets and cryptoasset-related items where the court is satisfied, and following an application made by the person from whom they were seized, that the detention of the property is no longer justified.
	Paragraph 10Z7AI (6) provides that where a cryptoasset-related item is not claimed within a year from the date of its release, and reasonable steps have been taken to notify any interested parties, an authorised officer may decide to retain, dispose of, or destroy the property, with the approval of a senior officer. Where the property is disposed of, any proceeds are to be paid into the Consolidated Fund or, for Scotland, the Scottish Consolidated Fund.