Finnish Government to Hold Public Auctions for Confiscated Crypto
- The Finnish government has released a new set of guidelines on how to handle seized cryptocurrency.
According to a Bloomberg report, the Finnish government has seized (and is currently in possession of) approximately 2000 bitcoins, most of which have been collected since 2016. The 2000 coins were worth just south of $40 million during the peak of the Bitcoin boom in December of 2017, and are now valued at approximately $22 million.
Finnish Government: Commercial Exchanges Can’t Be Trusted
Wisely, the guidelines have declared that Finnish authorities cannot store the BTC on exchanges, as may have been the modus operandi in the past--the Helsinki customs office declined to share how the government has been storing confiscated crypto up to this point. Now, BTC in government control must be kept in ‘cold storage’; that is to say that they must be kept in electronic storage that is not connected to the internet.
The guidelines have also declared that Finnish authorities cannot use Bitcoin (or any cryptocurrency) to make or receive payment; they also can’t treat it as an investment.
So what can the Finnish government do with the crypto in its possession? The Treasury document containing the guidelines stated that the government can convert crypto into euros once a court has legally declared the coins to be in the custody of the government.
The guidelines added that instead of commercial exchanges (which the government says are too opaque, and therefore untrustworthy), BTC and other cryptocurrencies should be sold for euros through public auction.
Finland Has Maintained a Balanced Approach Toward Crypto
While the Finnish government has cracked down on illegal activity in the cryptosphere, it has maintained a mostly neutral attitude toward cryptocurrency Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term as a whole.
In September, a research paper published by the Central Bank of Finland stated: “Bitcoin is not regulated. It cannot be regulated. There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts.”
However, in November, as the price of BTC began to rise astronomically in the run-up to the advent of Bitcoin futures trading on CME and CBOE, the Finnish Financial Supervisory Authority warned the public of the risks of investing in crypto and participating in ICOs.
According to a Bloomberg report, the Finnish government has seized (and is currently in possession of) approximately 2000 bitcoins, most of which have been collected since 2016. The 2000 coins were worth just south of $40 million during the peak of the Bitcoin boom in December of 2017, and are now valued at approximately $22 million.
Finnish Government: Commercial Exchanges Can’t Be Trusted
Wisely, the guidelines have declared that Finnish authorities cannot store the BTC on exchanges, as may have been the modus operandi in the past--the Helsinki customs office declined to share how the government has been storing confiscated crypto up to this point. Now, BTC in government control must be kept in ‘cold storage’; that is to say that they must be kept in electronic storage that is not connected to the internet.
The guidelines have also declared that Finnish authorities cannot use Bitcoin (or any cryptocurrency) to make or receive payment; they also can’t treat it as an investment.
So what can the Finnish government do with the crypto in its possession? The Treasury document containing the guidelines stated that the government can convert crypto into euros once a court has legally declared the coins to be in the custody of the government.
The guidelines added that instead of commercial exchanges (which the government says are too opaque, and therefore untrustworthy), BTC and other cryptocurrencies should be sold for euros through public auction.
Finland Has Maintained a Balanced Approach Toward Crypto
While the Finnish government has cracked down on illegal activity in the cryptosphere, it has maintained a mostly neutral attitude toward cryptocurrency Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term as a whole.
In September, a research paper published by the Central Bank of Finland stated: “Bitcoin is not regulated. It cannot be regulated. There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts.”
However, in November, as the price of BTC began to rise astronomically in the run-up to the advent of Bitcoin futures trading on CME and CBOE, the Finnish Financial Supervisory Authority warned the public of the risks of investing in crypto and participating in ICOs.