The Finnish customs agency has been defining what to do with an amount of Bitcoin seized. So far the winning option has been not to sell, because they fear that these cryptocurrencies may end up again in the hands of criminals if it is sold.
This agency is commonly known as Tulli. Thus, Tulli has been trying to download a total of 1,666 bitcoin for several years, even developing a plan in September 2018 for a public auction of cryptocurrencies.
Tulli confiscated this amount of Bitcoin after a successful raid in a dark online market in September 2016. At that time, BTC was trading at about $ 570.
From this we can deduce that those 1,666 BTC were equivalent to approximately USD 950,000. Currently, when Bitcoin is below USD 9,200, that amount is worth more than USD 15 million.
At the historic peak of Bitcoin, about $ 20,000 in December 2017, the seized would have been worth almost $ 33 million.
What have Finnish officials declared about this seized Bitcoin?
Speaking with local media, Tulli director Pekka Pylkkanen said: “From our point of view, the problems are specifically related to the risk of money laundering.” According to him, Bitcoin buyers rarely use it for their common activities.
However, Pylkkanen’s claim that most cryptocurrency holders use them for illegal purposes is not backed by numbers. If there is concern of many governments of the world for the lack of regulation, but this is not sufficient reason to affirm it.
A November report by the blockchain analysis firm Elliptic suggested that of $ 829 million in Bitcoin, only 0.5% of all transactions were linked to the deep web.
Tulli is not the only government authority that has to decide what to do with the confiscated Bitcoin. By their nature, these goods usually have dollar values many times greater than when they were first seized.
Other governments that have confiscated BTC. How have they solved it?
In the past, the United States government confiscated hundreds of millions of dollars in Bitcoin. As a solution to this, they have organized multiple online auctions to sell the confiscated.
Another known case is that of Belgium, at the beginning of 2019. Here, the Belgian authorities also sold the confiscated Bitcoin through an online auction house. Later this year, the UK police used the same auctioneer to sell more than $ 290,000 of cryptocurrencies that they had seized from a teenage hacker.
The official prohibition of the Finnish government to sell these Bitcoin occurred in 2018. Specifically, it was forbidden to try to sell the seized currency on the exchanges or trading platforms. In addition, the agency was ordered to store confiscated digital assets in a secure cold storage portfolio.
Degree in Liberal Studies from the Metropolitan University. Lover of innovation and believer of technology for the future.