Finnish Authorities Told to Secure Bitcoin Holdings in Cold Storage
Finnish authorities have a bitcoin storage problem on their hands. After seizing thousands of bitcoin over the last two years, Finnish officials have now been formally mandated to store the cryptocurrency in so-called “cold storage” solutions offline.
2,000 Bitcoin to Be Exact
It’s definitely not a “hodl” in the traditional sense. But in recent months, Finnish authorities have been sitting on a bitcoin trove until they could figure out what to do with it.
Now, they finally have some guidance. Specifically, the Finnish Treasury issued a new set of guidelines on February 20th mandating how authorities should proceed with the cryptocurrency.
And domestic officials have a lot it — approximately 2,000 bitcoin, which have been accrued by law enforcement officials in multiple raids going back to 2016.
The new guidelines state that officials should begin moving the coins offline. Storing the BTC in a cryptocurrency exchange account was expressly forbidden, suggesting that custodial services like Coinbase Custody may not be considered.
It’s unclear how the officials were storing the cryptocurrency in the interim. The new rules set out that the holdings must be treated like an asset and like an asset only; authorities cannot maintain the fund in an investment-like fashion.
Auctions Comes Next
After the bitcoins in question are secured offline, a Finnish court will formalize the proceedings, at which point the BTC can be sold off in exchange for fiat.
The Treasury declared that the sales should be public, not private, auctions. It’s an increasingly popular model.
In the United States, for example, numerous bitcoin auctions have made headlines in recent years. Back in 2014, venture capitalist maestro Tim Draper famously participated in an auction involving coins confiscated during the infamous bust of the original Silk Road darkweb marketplace.
What’s your take? Do you think Finnish authorities are going about their hodlings smartly? Sound off in the comments below.
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