The United Kingdom’s Home Office is preparing to liquidate a massive stash of cryptocurrency, worth at least $7 billion in bitcoin. According to reports, most of the forfeited bitcoin was recovered from a historical criminal investigation in 2018, which included more than 61,000 BTC. This move by the UK government comes at a time when Bitcoin surged to new all-time highs above $123,000 last week.
UK Home Office Prepares the Sale of Confiscated Bitcoin
During a 2018 police action to take down a Chinese Ponzi Scheme, the officials seized at least 61,000 BTC. The CEO of Asset Reality, a UK-based seized crypto assets recovery company, Aidan Larkin, said, “I do think digital assets will lead to a large windfall for government agencies and the public purse over the next five to ten years.”
Now, when the Bitcoin price has surged and reached an all-time high, Former Chancellor Norman Lamont urged the government to “ spend it right away.”
Impact of Bitcoin Surge on the UK Government’s Crypto Sale
As Bitcoin price skyrocketed and trading for more than $123,000 (£92,000) last week, the UK prepares to sell its seized crypto assets. The stash of 61,000 BTC is worth more than £5 billion (approximately $7 billion) after the rapid growth of Bitcoin. It is unclear how much cryptocurrency the UK government currently holds, as it prepares to fill the fiscal hole with the crypto sale.
Why is the UK Government Preparing for Bitcoin Sales
Chancellor Rachel Reeves is facing calls to plug a £20 billion fiscal hole, as the UK struggles with growth and stubborn inflation. These problems have increased the government’s urgency to find new revenue sources to fill the fiscal gaps.
This move of Bitcoin sale came as a solution, as it would also save the government from imposing further tax rise or cuts in public spending. However, some UK officials have voiced their concerns regarding the sale, arguing that volatile assets could lead to either missed gains or sudden losses if the price dips.
Final Thought
Furthermore, the Home Office is developing proposals for a “cryptoasset holding and realization framework” to enable police to sell and store digital currencies securely. It will make the liquidation smoother while allowing efficient handling and redistribution of assets seized during the investigation.
