Ex-Police Investigator to Lead UK’s Crypto Recovery Push
In a bold new move to tackle rising crypto insolvencies, the UK Insolvency Service has appointed Andrew Small, a former police investigator with a background in economic crime, as its first-ever crypto intelligence specialist. His mission? To trace and reclaim lost or hidden digital assets from bankrupt companies and criminal cases.
In a June 9 statement, the agency explained that Small’s appointment is a direct response to a 420% spike in crypto-related insolvency cases over the last five years. The estimated value of identified crypto assets in these cases has exploded by 364 times, now totalling over £523,580 (approximately $709,500).
From Bitcoin to NFTs
Small’s new role will involve providing technical expertise about the vast array of digital assets currently in circulation, from popular coins like Bitcoin and Ethereum to memecoins like Dogecoin and NFTs. The goal is to help investigators properly identify, trace, and recover crypto in both insolvency and criminal investigations.
The Insolvency Service’s Head of Intelligence, Neil Freebury, welcomed the move, stating:
As crypto becomes a more frequent component of financial portfolios, recovery experts now need to understand everything from blockchain wallets to decentralized exchanges, and how these tools can be used to obscure or hide assets during insolvency.
Crypto Ownership in the UK Keeps Rising
According to a study from the UK’s Financial Conduct Authority, crypto ownership in the UK is growing rapidly. As of late 2024, around 12% of UK adults own some form of cryptocurrency—up from just 4% in 2021. On average, holders report owning up to £1,842 ($2,496) in digital assets.
This upward trend in ownership highlights the increasing relevance of crypto in asset recovery, especially when it comes to bankruptcy settlements and creditor reimbursement.
Tighter Regulations Coming for Crypto Firms
The UK's proactive stance on recovery coincides with a major regulatory overhaul. Starting January 1, 2026, crypto companies in the UK will be required to collect and report detailed data for every customer transaction. This includes a user's full name, home address, tax ID, and transaction specifics such as coin type and amount transferred.
This rule is part of the UK’s adoption of the OECD’s Cryptoasset Reporting Framework (CARF), which aims to bring greater transparency to crypto activity and clamp down on tax evasion.
The UK revenue and customs department confirmed the plan, emphasizing the importance of standardized global reporting to ensure crypto does not become a loophole for financial crime.
Strategic Moves Signal UK’s Focus on Crypto Oversight
Andrew Small’s appointment and the new regulatory mandates are clear signs that the UK is taking digital assets seriously, not only as a tool for innovation but as a recoverable and taxable asset class. By enhancing its capacity to track, recover, and regulate crypto, the UK positions itself as a global leader in shaping the legal and financial future of blockchain.
