- UK plans to sell £5 billion Bitcoin to ease budget deficit.
- Police seized 61,000 Bitcoin from Chinese Ponzi scheme in 2018.
- Genius Act boosts Bitcoin prices; UK prepares crypto sale framework plan.
The UK government may soon sell a huge amount of Bitcoin. UK Chancellor Rachel Reeves is considering selling over £5 billion worth of Bitcoin that police seized in past years. This step may aid in filling a widening budget deficit and raising badly needed revenue into the Treasury.
UK Home Office Plans Framework to Sell Confiscated Bitcoin
The Telegraph reports that the largest portion of this hoard is 61,000 Bitcoin confiscated in 2018. These coins were recovered by the British police at that time who had found them in a Chinese Ponzi that was stashing the money in the UK. Bitcoin was so much cheaper when it was initially taken away. Today, the worth of Bitcoin has skyrocketed up to 20 folds.
Bitcoin recently reached another all-time high of 123,000 (92,000) dollars a coin last week. This implies that the 61,000 Bitcoin has increased in value to over 5.4 billion Pounds. The recent developments in the United States have been a part of the reason why prices have been going up. President Donald Trump and US legislators signed the Genius Act on Friday. It will be the first significant national cryptocurrency legislation in America. It has simplified the process of cryptocurrencies being used by people and companies and this has contributed to the rise in prices.
Meanwhile, the Home Office of the UK is developing a proposal under the title of a crypto storage and realization framework. Through this plan, the police will find it easier to store seized cryptocurrencies safely, thus selling them when the need be. The Home Office is also giving a tender of up to 40 million pounds in commission to those companies that can assist in managing and selling these digital assets.
There is, however, a sense of imminence as to how much money that the Treasury is going to receive as a result of this sale. It is not known how much money other cryptocurrencies police in the UK may have, but they may have it.
UK Bitcoin Sale Could Spark New Crypto Rules
Interestingly, this plan comes as some people suggest using Bitcoin to help national finances. For example, Nigel Farage, the head of Reform UK, has demanded that Britain establish a national reserve of Bitcoins. The Labour government has so far been opposed to this thought. However, others state that the nation can utilize its Bitcoin to make debt payments or finance the state budget.
Changpeng CZ Zhao, founder of Binance recently highlighted that Bitcoin may assist some countries in their national debt. He used an example of Bulgaria. In 2018, Bulgaria sold 213,500 Bitcoin. The equivalent of the coins in today’s terms would be sufficient to pay almost 80 percent of the national debt of Bulgaria.
At the moment, the price of Bitcoin is between 118,000 and 119,000 dollars, as per the CoinMarketCap. Recently, it recorded an all-time high of $123,091.
In the future, this step may also lead to the emergence of new cryptocurrency regulations in the UK. Selling Bitcoin, the government might have to formulate more explicit policies on the storage and trade rules, as well as taxation of digital assets. Tougher regulations would ensure that the crypto market is safer and instill confidence in investors. This could also motivate more individuals to use and invest in cryptocurrencies in the future.
Last but not least, it may have worldwide implications as well. The UK is one of the major economies. In case Britain sells its bitcoin store successfully, other countries can follow suit.
