Source: Adobe / Oleksii
The Finnish government will reportedly donate Bitcoin (BTC) seized from criminal operations to Ukraine to support its war effort against the Russian invasion.
According to Finnish media outlet Helsingin Sanomat, the Finnish government has amassed 1,981 BTC ($78 million). The coins were seized by Finnish customs officials during “investigations related to” crimes such as “drugs and drug trafficking”.
The country’s courts, meanwhile, have ordered the transfer of the bitcoins in question to the state, which is now attempting to exchange the coins for cash.
But the sources didn’t rule out handing over their bitcoin stash “directly to Ukraine.”
The newspaper, one of the largest in Finland, claimed its sources said a decision on how much of the proceeds from the sale should be donated to Ukraine has yet to be made. However, according to the same undisclosed sources, a decision has already been made to actively use bitcoin holdings “to help Ukraine.”
The matter was discussed “within the government earlier in the spring,” with “confirmation” also obtained from the nation’s President, Sauli Niinistö.
The matter will be discussed in Cabinet with a final and binding decision due in May, the report said.
The government, the source added, is currently unsure how to proceed and is concerned that a crypto donation of this size and type would “look bad to outsiders,” noting:
“Certain sensitivities apply to cryptocurrencies as they can be linked to crime. Also, it would be difficult for Finland to ensure that the bitcoins it donates don’t end up funding criminal activities.”
But the decision to sell the tokens for fiat could also prove problematic. A government source was quoted as saying that the state is concerned that by selling the bitcoin for cash and then donating the fiat, the amount of the proposed donation could end up shrinking – due to changes in market prices.
The Finnish government also has no legal mechanism that would allow it to make donations of this type — a factor that would actually make a direct crypto donation easier, the sources said. This is because converting the tokens into cash and then donating it would involve additional bureaucratic and legal processes, the sources said.
In comments submitted by readers of the article, some questioned the government’s strategy, with one highly upvoted commenter suggesting that the state could instead sell the BTC for cash and use the money to buy weapons from Finnish vendors — which both benefit the Ukrainian war effort and the Finnish economy.
The move could well be repeated in Canada, where the Globe and Mail reported that Ottawa “would give itself the power to sell foreign nationals’ assets seized under the Sanctions Act and then turn them over to affected victims or for reconstruction.” to pay for the war. Torn Countries” — meaning it could channel the money and assets seized from sanctioned Russians to pay for Ukraine’s post-war reconstruction.
The move will also be instrumental in the Canadian government “broadening the definition of assets eligible for confiscation through sanctions to include cryptocurrency and non-fungible tokens (NFTs),” the media outlet added.
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Learn more:
– Crypto is helping Ukraine defend itself against the invasion of Russia, here’s how you can help
– Finland is exploring ways to store 2,000 confiscated Bitcoin
– Ukraine doubles down on crypto-friendly regulation efforts and aims for top spot
– Exclusive: How Ukraine’s crypto fundraising started, how it’s going and what’s next
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