Sweden can now seize crypto assets even if no crime is proven as long as the owner cannot explain the source.
The new law targets unexplained wealth and gives enforcement more power to act against suspected criminal assets.
Over $8 million worth of assets have been seized since the law took effect in November last year.
Sweden’s Justice Minister has called on law enforcement to intensify efforts in seizing criminal assets, including cryptocurrencies. Authorities now have expanded powers under a new forfeiture law. The law took effect in November and allows property seizures without the need for a criminal conviction.
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The directive from Minister Gunnar Strömmer targets high-value digital assets suspected to be linked to criminal activity. Agencies can now confiscate cryptocurrency if individuals cannot explain its origin. This shift removes the previous requirement to prove a specific offense.
Swedish enforcement bodies must now enhance coordination. The Police Authority, Tax Agency, and Enforcement Authority have been asked to increase joint operations. Strömmer emphasized the need to focus on assets with high profit margins. So far, officials have seized assets worth over $8 million under the new law.
Broad Legal Reach
The legislation extends beyond adult suspects. It includes minors and individuals with severe mental disorders. This makes it one of the most comprehensive seizure laws in Europe. Sweden aims to reduce financial incentives for criminal networks by tightening control over unexplained wealth.
Increased seizures come amid growing concerns about crypto’s role in crime. Sweden’s Financial Intelligence Unit recently linked some exchanges to money laundering activities. A 2024 report noted that drug dealers and money launderers often use digital assets to conceal profits.
Law enforcement agencies have been urged to expand their presence on crypto platforms. This will help track suspicious activity and identify illicit providers. Sweden views this digital surveillance as necessary to stay ahead of criminal operations.
Push for Strategic Bitcoin Reserve
Meanwhile, lawmakers in Sweden are discussing creating a national Bitcoin reserve. Some support redirecting seized crypto to the central bank. This would give Sweden a strategic holding of Bitcoin and align with moves seen in countries like the United States and Czechia.
Sweden Democrat Dennis Dioukarev is among those backing both increased seizures and the formation of a national crypto reserve. However, Minister Strömmer’s office has not confirmed any formal policy on how seized crypto will be managed.
The government has yet to disclose specific plans for seized digital assets. The Justice Ministry has also not responded to questions about enforcement strategies or next steps.
Organized Crime Concerns
In 2024, over 60,000 people were reportedly linked to criminal networks in Sweden. These groups are believed to generate large profits, often using 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. The focus remains on stopping financial crime at the source and increasing asset recovery rates across the country.
