Britain’s government has established a new “crypto intelligence specialist” who will be in charge of investigating and managing cryptocurrency firms that have fallen into bankruptcy.
The new specialist will work under the U.K.'s Insolvency Service that is responsible for returning assets to creditors in bankruptcy cases.
The government in Britain has expanded the Insolvency Service’s mandate to help trace cryptocurrencies in bankruptcy proceedings as digital assets become more widespread.
Former police investigator Andrew Small has been named the first crypto intelligence specialist and will take on the role at the government agency that primarily focuses on criminal cases.
In the past five years, the number of bankruptcy cases involving cryptocurrencies has risen by 420%, according to government data.
The estimated value of cryptocurrencies involved in insolvencies rose by 364 times to about 520,000 British pounds ($700,000 U.S.).
The United Kingdom (U.K.) has been enhancing its cryptocurrency framework as digital assets have gained in popularity.
Research by the Financial Conduct Authority shows that the number of British citizens holding cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) increased to seven million in 2024 from 2.2 million in 2021.
The British government has also published draft legislation and consultations for a cryptocurrency regulatory regime that has yet to be implemented.
