In short
- The British government tries to keep the majority of the 61,000 BTC that seized it in 2018 in the midst of civil recovery procedures.
- Some figures within the British crypto industry are of the opinion that every detained BTC should be stored in a strategic reserve, while others claim that the long-term retention of seized assets is at odds with British legislation.
- Nevertheless, all groups suggest that a Bitcoin reserve would be a big boost for the British crypto industry, in which some call for feasibility studies and pilots to be carried out.
Trade associations representing the British crypto industry have a mixed opinion about whether the British government should use $ 7 billion Bitcoin as the basis of a strategic reserve.
Allegedly, the British government wants to hold most of the 61,000 BTC that seized it in 2018, with civil recovery procedures that currently determine how much must be returned to victims of a large -scale Chinese investment fraud.
The legal question how many victims should be compensated comes at a time when the British government is looking for ways to fill a gap in public finances with a value of a maximum of $ 67 billion.
However, some representatives of the Crypto industry are skeptical that the government will keep the frozen Bitcoin for the long term, assuming that civil proceedings determine its right to maintain the majority of the seizure.
Spend against DecryptThe British Blockchain Association President Prof. dr. Naseem Naqvi MBE said that the British approach to criminal assets is ultimately determined by the proceeds from Crime Act (POCA), which means that the objective of British policy in this area is the restoration of criminal proceeds, and no long -term investments or possession.
“Recent ministerial answers have again confirmed that confiscated assets are managed and realized under POCA, and that the official reserves policy of the VK is not considering adding Bitcoin; there are no plans to change this or to regard BTC as a spareboard,” he explained.
The British law not only points out of the long -term retention of the frozen BTC, but Naqvi suggests that such an attitude would also contradict the current British tax policy.
He said: “From a public-financing perspective, taking price volatility risk with confiscated assets would be contrary to the established British treasury and Bank of England reserve principles and could create a precedent that the line fades between asset recovery and investment policy.”
However, these views are not shared by the British Crypto industry as a whole, with a spokesperson for Cryptouk – who counts, such as Gemini, OKX, Inputout, Bitwise, Socios.com and Nexo as members – who make plans to immediately sell the Frozen Bitcoin to the British government.
They said: “We would encourage the government to take a long-term vision about keeping crypto and deeply consider what message would load this digital assets to the Crypto industry of the UK.”
The Cryptouk spokesperson also emphasized the fact that other areas of law take steps to maintain strategic cryptocurrency reserves, as well as a growing number of listed companies.
Despite emphasizing legal arguments that can or will prevent the British government from keeping the 61,000 BTC for the longer term, Professor Naqvi recognized that the creation of a British Bitcoin reserve would be a powerful signal for industry.
“It would be symbolically powerful, but in this context policy -in -consultant,” he said. “A government athlete visibly ‘hodling’ could be read by markets as a voice of trust and can be welcomed by some voices in the industry.”
But because long-term property would “be contrary to POCA’s victim-targeted recovery goals” (and with recent confirmations that the British government is not a crypto-reserve plant), Naqvi suggested a more practical, realistic option.
He explained: “If courts order forfeiture, the government could choose a phased and transparent removal (eg auction windows) to reduce market effects, in accordance with international practice, while it stays in Poca’s goal.”
And in such a context, Naqvi confirmed that the VK should concentrate on offering leadership to the British crypto industry by “completing high-quality, evidence-based crypto regimes” and ensuring consistent enforcement.
The sale of the frozen bitcoin can be sold out as quickly as realistic as possible, can bring the risk of repeating one of the most controversial tax actions in recent British history, namely the sale of 401 tonnes of gold (more than half of the British reserves) between 1999 and 2002.
Gold sales collected $ 3.5 billion for the British treasury, but they took place at a time when the average gold price was $ 275 per ounce, the price of the precious metal has risen over the years to the current level of $ 3,850 per ounce.
Naqvi and the British Blockchain Association, however, argue for the British government to consider studying the feasibility of Bitcoin and Crypto Reserves, while even performing a pilot allocation that is equal to between 0.1% and 0.5% of the total assets.
“From the perspective of the BBA, the UK should not be seized as a de facto Reserve, “he said.” But through research, pilots and international dialogue, it should investigate whether Bitcoin could play a measured strategic role in the future reserve policy of the UK. “
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