The United Kingdom (UK) is preparing to offload over $7 billion worth of seized Bitcoin, marking one of the largest crypto liquidations by a government in history. This move aims to supplement the country’s strained budget while signaling a shift toward tighter crypto regulation and transparency.
The massive stash of Bitcoin stems from the $10 billion PlusToken crypto scam. To those of you who do not know, PlusToken was a fraudulent scheme that was initially uncovered in China. It involved victims and operations across multiple countries. British authorities, working with international partners, recovered the crypto assets through a long investigation and plan to begin liquidation soon.
While governments like the US have previously auctioned seized crypto, the UK’s planned sale is notable both for its scale and timing, as Bitcoin continues to trade near the $119,000 mark.
The UK Bitcoin sale might help shore up public finances, according to a Bloomberg report. With inflation and economic headwinds still looming, the windfall from this sale offers immediate fiscal relief.
At the same time, the move aligns with the UK’s recent pivot toward regulated crypto markets. Prime Minister Rishi Sunak previously expressed his intent to make the UK a global hub for crypto innovation, as long as the government enforces strong consumer protection measures.
The Treasury has also hinted at new crypto laws, potentially mimicking the EU’s MiCA framework, to prevent illicit activity and provide clear guidelines for businesses and investors.