A new Bill that will enable Government to seize and forfeit cryptocurrency will be tabled in Parliament this week.

Despite concerns from the crypto community, Teariki Olah, the founder of a local crypto enthusiast group, has welcomed the 2023 Tainted Cryptocurrency Recovery Bill.

According to its explanatory notes, the Bill aims to combat money laundering, financing of terrorism, financing of proliferation of weapons of mass destruction.

The Bill focuses on the detection, investigation, seizure and forfeiture of cryptocurrency that is or represents the proceeds of proscribed conduct, which can be achieved through the process of civil forfeiture.

Olah believes the Bill is a “pretty good idea” because it strives to protect the Cook Islands and its citizens from the potential negative aspects of the crypto world, such as scammers and “rug pulls”, which usually aim to take advantage of those who haven’t educated themselves about the safe and correct practices of dealing with cryptocurrencies.

He sees the Bill as a positive initial step towards protecting Cook Islanders on a global and national scale from some of the negative aspects of crypto, like scammers or tainted cryptocurrencies and organised financial crimes or terrorism funding.

“Overall, I feel it is a positive first step. It is aiming to help protect us as a nation and as individuals.”

Due to the technical nature of the Tainted Cryptocurrency Recovery Bill, Members of Parliament underwent a special workshop yesterday to familiarise themselves with the Bill before it is presented in Parliament today.

Clerk of Parliament Tangata Vainerere confirmed a special briefing for MPs was conducted with facilitator Tim Arnold (the drafter), Crown Law and the Cook Islands Financial Intelligence Unit (FIU).

Vainerere said other stakeholders were present to hear more about the Bill before it is tabled.

He also confirmed that the Tainted Cryptocurrency Recovery Bill will be referred to a Special Select Committee to be established today.

Meanwhile, also in Parliament, Vainerere said three Constitution Amendment Bills and three other Bills will all be presented today.

“But they all cannot be passed in this last Parliament sitting of the year.”