A city council in the United Kingdom has made a huge profit of the seizure of Bitcoin. But could the similar plans of the treasury follow and sell while the prices are high?
A local police authority in the United Kingdom has succeeded in winning £ 500,000 in Bitcoin, because the assets once seized in value. It realized the acquisition when the money it had reported that had been reported was converted into Bitcoin. While legal cases and property were determined, the coin rose in value.
The rising price of Bitcoin
In the United Kingdom it is not possible to pay victims more than what of them has been stolen. For example, their initial loss was reimbursed, which means that the Lancashire police had half the win, which was £ 1 million. This was halved between the power itself and the home office.
Higher in the chain, the United Kingdom has recently been in discussion to sell its shares of Bitcoin to connect a shortage. These will be funds that have been claimed from criminal activities. There is reportedly about £ 5 billion of this available for the treasury. It is not known whether they also have other digital assets, including NFTs with a high ticket price.
To facilitate this, it is assumed that they will create a storage system to handle the sale of this currency. This storage and realization framework will also be used to save future assets that the treasury acquires and can then sell or hold. In May they launched a £ 40 million project for contracts to keep this. However, it had no bids.
It is believed that this will solve some of the problems that are solved by the approaching autumn budget. Rachel Reeves, the Chancellor, promised during the election campaign that she would not levy taxes. A U-turn to reform the well-being has created a big gap in its budget. This has made tax execution an opportunity, with some think tanks that say they are the only way to connect the shortage. This has also been worsened by a slow economic growth.
The money was taken over in 2018. The United Kingdom thwarted a Ponzi schedule that was founded by a company known as Tianjin Lantian Gui Electronic Technology. It only came to light when one of the most important organizers, a man named Jian Wen, tried to buy a country house in London with BTC as a payment. More than 61,000 BTC was seized, sentenced to 6 years and 8 months in prison.
Everything may not be as smooth as it seems. The legal ownership of the active is currently at stake. The courts in the United Kingdom still decide who owns the money, and the outcome can lead to one of the three things.
The first is that it will be sold under the proceeds of crime legislation. This is the best result for the British government and lets them sell. Secondly, there is a decision whether the victims should be compensated. This is difficult because the money was in the scheme in the Chinese Yuan. This can also mean that the Chinese government has a claim about them.
What do people use cryptocurrency for?
The money has been reserved by the municipality for a series of projects. These include local community projects that focus on crime reduction and prevention. This is one of the many initiatives for which seized cryptocurrencies have been used for a positive effect.
At a more practical level, Bitcoin himself was invented as a form of currency that could be used digitally, without the gaze of traditional financial institutions. This meant that it was decentralized, with anyone, such as a bank or government, who was responsible for it.
Although it becomes more valuable and is used less as a payment method and more as an investment tool, there are still sectors that use it. The online gambling industry is one, with its casinos and sports books. Many casinos now accept cryptocurrency as a payment, and you still get the same access to the broad selection of games and customer service as people who pay with traditional methods. This sector has grown by inviting customers with the help of No deposition bonusesSo they can try out games without having to place money. This can be done with the help of each payment method, from bank transfer to visas and, in some cases, even crypto.
Others use it for buying and selling non -Fungabel tokens. Known as NFTS, they are the property of a digital document, artworks or even a piece of music on a decentralized ledger.
How can this influence the price of Bitcoin?
Some have gone against the sale of this cryptocurrency. This is especially of those who believe that the price of Bitcoin will rise even further. Now selling to connect a short -term gap is not preferred to many, who believe that it must be kept up to a later date in which prices rise.
A sale of this size in one go can have an impact on the market. There have been some major sale of whales in recent months. These are people who have large amounts of cryptocurrency. With a huge fall in the markets, it would increase liquidity, lower the scarcity and lower prices.
The UK now has an important decision to make. Whatever it decides, it must create a precedent and establish a framework for introducing guidelines and laws about what happens to seize crypto assets in the future. By doing this, the United Kingdom could free a growing part of its economy future.
Main image Source: Pexels
