UK Crypto Industry Divided Over Whether Government Could Hold Seized 61,000 Bitcoin as Strategic Reserve

The UK seized 61,000 BTC in 2018; debate centres on whether the government should retain it as a strategic reserve or dispose of it under the Proceeds of Crime Act to prioritize victim recovery and fiscal ￰0￱ assets: 61,000 BTC (2018 seizure) UK law (POCA) prioritizes recovery for victims over long-term asset ￰1￱ include phased auctions, pilot reserve studies, or research-led policy ￰2￱ seized Bitcoin: 61,000 BTC seized in 2018 under POCA—debate over reserve ￰3￱ expert views and policy options from COINOTAG. , What is the debate over the UK seized Bitcoin (61,000 BTC)? The debate concerns whether the UK should retain the 61,000 BTC seized in 2018 as a strategic reserve or realise it under the Proceeds of Crime Act to compensate victims and support public ￰4￱ weigh legal obligations, fiscal risk, and market ￰5￱ does UK law (POCA) affect the fate of seized BTC?

POCA prioritises recovery of criminal proceeds and restitution for ￰6￱ BTC therefore faces legal scrutiny in civil recovery proceedings to determine how many coins must be returned to identified ￰7￱ and legal advisers interpret POCA as limiting long-term government holding for investment; disposal consistent with victim recovery is the primary ￰8￱ do some industry groups support holding a crypto reserve? CryptoUK and other industry representatives argue that an immediate sale could signal instability and harm the UK’s competitive position in crypto ￰9￱ point to growing global interest in strategic crypto reserves and public company allocations as ￰10￱ are the practical options for government action?

Options range from full realisation for restitution and treasury receipts to phased, transparent disposal to limit market disruption. A third option is commissioning evidence-based pilots and research into measured reserve allocations (e. g., 0.1%–0.5% of assets) before any policy ￰11￱ are the experts and what do they say? Professor Naseem Naqvi MBE, President of the British Blockchain Association, emphasises POCA’s victim-focused objective and warns that long-term holding would conflict with established Treasury and Bank of England reserve management principles.

A CryptoUK spokesperson urged a long-term view, noting symbolic benefits of holding, but also calling for careful policy consideration and transparent rationale for any strategy that departs from current ￰12￱ Asked Questions How much is 61,000 BTC worth today? Bitcoin’s market value fluctuates; multiply the current BTC price by 61,000 for a real-time ￰13￱ context: some estimates have valued the seizure near $7 billion at various price ￰14￱ the government set up a Bitcoin reserve without changing law? Not ￰15￱ and Treasury reserve policies constrain using confiscated assets as de facto reserves. A formal reserve policy for crypto would likely require policy reviews and potentially legislative or procedural ￰16￱ Takeaways Legal constraint : POCA prioritises restitution and recovery over ￰17￱ risk : Rapid disposal risks price disruption; phased sales reduce ￰18￱ path : Research, pilots, and international dialogue offer a prudent route to any future reserve ￰19￱ The 61,000 BTC seizure presents a policy crossroads: honour POCA’s victim-focused mandate while exploring evidence-based approaches to crypto in ￰20￱ recommends transparent disposal options, targeted research, and pilot programmes to balance legal duties, fiscal needs, and market stability.