Sweden Reportedly Orders Aggressive Seizure of Unexplained Crypto Assets

Sweden’s Justice Minister has reportedly directed law enforcement and financial agencies to escalate the seizure of cryptocurrency assets that cannot be adequately explained – even in cases where there is no direct evidence of a crime. The move is based on a controversial law passed in late 2024 and marks one of Europe’s most assertive efforts to curb the illicit use of digital assets.

Justice Minister Gunnar Strömmer issued the directive on July 4, calling on police, tax authorities, and the national Enforcement Authority to intensify their focus on confiscating crypto linked to suspected criminal activity. “It’s time to turn up the pressure,” Strömmer said, emphasizing improved inter-agency coordination, particularly when dealing with high-value assets such as cryptocurrency.

The law underpinning the directive allows authorities to seize digital assets if their origin cannot be credibly explained — even if the owners have not been charged with any crime. Since its enactment, the law has been used to confiscate approximately $8.4 million in property.

Organized Crime and Crypto Concerns

Sweden’s move comes amid increasing concern over the role of cryptocurrencies in organized crime. A September 2024 report from the Police Authority and the Financial Intelligence Unit concluded that certain crypto exchanges effectively operate as money laundering platforms, facilitating the flow of funds from drug trafficking, fraud, and other criminal enterprises.

The report urged law enforcement to increase its oversight of crypto trading platforms. Data from the Bloomsbury Intelligence & Security Institute estimates that roughly 62,000 individuals in Sweden are connected to criminal networks. While crypto-specific crime data remains limited, authorities have pointed to the anonymity and cross-border nature of digital assets as key challenges in tackling financial crime.

Despite the government’s aggressive approach, there is no clarity on what will happen to the seized digital assets. When asked for details, Strömmer’s office declined to comment on whether the confiscated crypto will be liquidated, retained, or redirected into a national reserve.

Sweden Democrat Dennis Dioukarev, a supporter of the crackdown and proponent of establishing a national Bitcoin reserve, has argued that the state should retain the confiscated cryptocurrency. He suggested that the assets, particularly Bitcoin, could be used to strengthen Sweden’s financial position.

Broader European Context

Sweden’s directive follows closely on the heels of Turkey’s own crackdown, which included the banning of more than 30 crypto platforms such as PancakeSwap. Together, these moves reflect a growing trend across Europe, where governments are taking a more interventionist approach to regulate the digital asset space and limit its use in criminal activity.

Feature	🇹🇷 Turkey (2025)	🇸🇪 Sweden (2025)
Regulatory Stance	Strict licensing (CASP law), AML enforcement, stablecoin limits, Travel Rule adoption	Enhanced AML enforcement, EU MiCA compliance, high-risk classification for some exchanges
Asset Seizure Powers	Limited to criminal investigations	Yes – seizure allowed without direct crime evidence
Transaction Delays & Caps	48–72h withdrawal delay for non-compliant transfers; stablecoin daily/monthly caps	No fixed delays or caps, but scrutiny on large/suspicious transactions
Licensing & Capital Rules	Mandatory CASP license; capital requirement: $4.1M (exchanges), $13.7M (custodians)	MiCA licensing expected; no separate capital thresholds disclosed
AML & Travel Rule	Strict enforcement; requires sender/recipient data; non-compliance triggers account freezes	Increased focus on exchanges; FIU monitoring for money laundering patterns
Reporting Obligations	Above-threshold KYC, transaction data tracking, derivative ban	DAC8/CARF reporting from Jan 2026; fines for non-compliance (SEK 2,500–5,000)