Seized Bitcoins Create Storage Puzzle In Finland After Treasury Guidelines

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Finland authorities are currently in dilemma on how to store 2,000 bitcoins that were confiscated in 2016 after the guidelines from the Treasury were published recently. According to the latest news from Bloomberg, the Finnish authorities are currently barred from storing bitcoin stash worth about $22.8 million on the virtual currency exchanges or services. Instead, the tokens should be stored offline, probably in the cold storage. The authorities are yet to clearly declare how they have been storing the seized tokens up to now.

Since the previous statutes on the confiscated currency are inadequate to address the problem, the Finnish government banned the authorities from considering bitcoin or any other cryptocurrencies as a currency. Therefore, bitcoin becomes an asset that cannot be used or accepted as an alternative form of payment or as an investment in the country.

Following the recent binding court ruling on the seized bitcoins, the Finnish state will significantly be converting the confiscated assets into euros at the public auctions since the Treasury perceives the commercial exchanges as the untrustworthy and opaque.

Finland is hence still trying to figure out how to store about 2,000 bitcoins that the authorities confiscated. Most of the coins were seized in dozens of the raids that were largely conducted across the country since 2016. The case is not the first one in which the cryptos are seized in the criminal investigations and auctioned off by the state. In Bulgaria, the authorities recently confiscated about 213,519 bitcoins worth approximately $2.5 billion today, which the government is planning to use in settling a part of its national debt.

In January, the US Marshal’s Office also auctioned off about 3,813 bitcoins that were seized in the criminal investigation especially during the arrest of the famous drug dealer in the state of Utah. The Marshal’s sum at that time was roughly $50 million worth in most commercial exchanges.

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