The UK Home Office is working with the police to prepare to sell a batch of sealed cryptocurrencies to fill the financial gap.
The UK government plans to establish a framework for storing and liquidating cryptocurrency to assist law enforcement agencies in preserving and handling seized digital assets.
MAIN CONTENT
The UK will sell a seized cryptocurrency batch worth billions of dollars to offset the budget.
Expected to create a framework for storing and liquidating cryptocurrency for enforcement agencies.
The operating contract for the central service is worth up to 1.3 trillion VND over 4 years.
Why did the UK government decide to sell seized cryptocurrency?
The Executive Director of the UK Home Office emphasized that selling seized cryptocurrency assets not only helps reinvest in crime prevention activities but also fills the financial gap caused by the pandemic. According to a report by the Daily Telegraph, a bitcoin seizure in 2018 worth over $7 billion now has a value increased by 20 times compared to that time, creating significant financial resources.
"The ability to liquidate cryptocurrency assets will help improve the effectiveness of public financial management while enhancing efforts to combat high-tech crime."
Emma Russell, Director of the UK Home Office, July 2024
In a 2018 campaign, British police seized 61,000 bitcoins from a Ponzi scheme case. The remarkable increase in the value of bitcoin has turned this seizure into a massive asset in the cryptocurrency market.
What is the policy for managing and liquidating seized cryptocurrency?
The Home Office is preparing to implement a framework for storing and liquidating cryptocurrency to ensure safety and transparency in asset handling. They will contract with a specialized unit to operate the storage and sale of temporarily seized cryptocurrency, aimed at optimizing the liquidation process of this massive asset.
The BlueLight Commercial bidding announcement reveals that this contract is worth up to $53.7 million, lasting at least 4 years. However, until now, no unit has fully met the participation requirements, demonstrating the complexity and strict nature of the operation.
"The average time from seizure to completion of legal procedures and liquidation of cryptocurrency assets usually lasts from 1 to 4 years, depending on the complexity of the case."
UK government bidding announcement, July 2024
What challenges are there in the process of seizing and liquidating seized cryptocurrency?
This process requires not only high-security storage techniques but also strict compliance with legal regulations. The handling and liquidation of such assets can take many years due to the need to wait for final legal conclusions.
Additionally, there is currently no effective centralized system to manage and sell seized cryptocurrency assets, leading to prolonged liquidation processes and reducing the potential value of the assets.
Comparing the stages of handling seized cryptocurrency under the current process and the new proposal
Criteria Current Process Proposed Framework by the Home Office Processing Time 1 – 4 years for legal procedures and liquidation Expected to shorten thanks to a centralized processing system Storage Safety Dispersed, unsynchronized Centralized storage, high security Asset Management Complex, handled case by case Centralized management, more transparent and efficient Operating Costs Unclear, potentially expensive $53.7 million contract over 4 years
Frequently Asked Questions
Why is seized cryptocurrency being sold?
Seized cryptocurrency is sold to recover assets, offset losses, and support crime prevention efforts, according to recommendations from government financial agencies.
How long does it take to liquidate seized cryptocurrency?
Typically from 1 to 4 years depending on the legal complexity of the case, according to the UK government bidding report in July 2024.
Who is responsible for storing and selling seized cryptocurrency assets?
The operating contract for the central service will be awarded to a specialized unit through a public bidding process managed by the UK Home Office.
What is the current value of the seized cryptocurrency batch?
For example, in 2018, 61,000 bitcoins seized were valued at over $7 billion as of mid-2024, according to the Daily Telegraph.
How can the framework for managing seized cryptocurrency minimize risks?
The centralized management framework ensures high security, transparency, and shortens processing times, minimizing losses in liquidating digital assets.
Source: https://tintucbitcoin.com/anh-tich-thu-bitcoin-ban-bu-ngan-sach/
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