Finnish Regulators to Sell Off Almost 2000 BTC
One major concern about cryptocurrencies that keep surfacing is using them to aid and abet illegal activities. Regulators have been cracking down and confiscating cryptocurrencies used to facilitate drug-related crimes or money laundering. In view of this, regulators in Finland are looking to dispose off about 1,981 BTC, which are proceeds that were seized from drug-related activities.
While that has been a recurring problem as cryptocurrencies continue to gain mainstream adoption, regulators are actively monitoring questionable crypto transactions. It is on this premise that regulators in Finland were able to confiscate the 1,981 Bitcoins. Now, they are looking for recognized brokers who would assist in selling off the crypto assets, which is estimated to be $82 million.
Regulators in Finland to Contract Services to Crypto Merchants on a Two-year Deal
Finnish regulators have noted that employing the services of the crypto merchants would help them dispose the crypto assets properly. As such, for any broker which meets the requirements, a two-year agreement will be signed with regulators, as they hope to trade off more crypto assets confiscated in the future after they dispose the current assets off.
According to Finland director of financial management, Pekka Pylkkanen, regulators in the country will be working with three recognized merchants. He added that they will be paid any amount within the range of €250,000 to €2 million, depending on potential confiscations in the coming years.
1,666 BTC, Proceeds from Drug Dealing Operations
Most of the Bitcoin asset confiscated were from an arrested drug dealer referred to as Douppikauppa. After Finnish authorities arrested the drug merchant, they were able to recover about 1,666 Bitcoins from him, which are proceeds of outlawed drug activities. Reports indicated that the confiscation took place in 2016, which means that the total value of the crypto assets would have appreciated. The remaining 315 BTC are also proceeds from illegal activities seized at different periods.
According to crypto reporting firm, CipherTrace, Finland has become the number one location for stashing illegal cryptocurrency proceeds. Russia trails behind Finland. Authorities will retain the seized assets until the crypto merchants are brought on board, according to the agreement. Finnish regulators are more concerned about selling off the assets properly, so they don’t get into the wrong hands.
Cryptocurrency seizures is now common, as regulators around the globe look to prevent their use for vices. It may be difficult to efficiently to do this due to their pseudonymous features. Tracking illegal crypto transactions will remain a challenge for regulatory bodies. In March, South Korean authorities cracked down on about $2.5 million worth of crypto assets belonging to over 30 tax defaulters.
As an alternative, crypto regulations are being enacted, which compel crypto exchanges to report large crypto transactions to relevant bodies. Compliance has been slow, because crypto transactions are meant to be anonymous. In view of this, exchanges have also been ordered to implement KYC/AML guidelines for their users.
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