Luxembourg's Lawmakers Unsure How to Best Manage Seized Crypto 2

Lawmakers of Luxembourg are not getting a perfect system on how to manage the funds of the seized crypto assets.

As we know that there are bad actors, which are using crypto assets for their illegal and cyber crime activities. So during a lawsuit against any person, court usually orders to seize the crypto assets and other property. But when the case ended, lawmakers found that assets have different value than what they seized.

Luxembourg’ Officials are under an uncertain situation because they are aware perfectly about the seizure of fiat assets and value, which remains stable. They have concern with the crypto assets, that they seize, with a particular fiat value and when they end up with the case, then they need to return or use the assets with the same value. And this is totally unfair as per traditional laws. 

For this problem, Luxembourg regulators and lawmakers did a discussion again after 1 year of efforts on 6 October. They considered the price of Bitcoin-like assets and claimed what will happen if a Crypto asset will get pumped or dumped just like Bitcoin by 30% up in 24 hours. 

So managing the crypto seizure for the regulators, became a very tedious task and probably they are not getting a better decision on how they can perfectly deal, whether they sell it to comply with the existing traditional rules or what?.

Right now officials of Luxembourg are planning to make a new team on the Digital assets based management, rules and issues to handle such matters. 

In this matter, the Ministry lawyers told to the lawmakers that 

“In the case of cryptocurrencies, given the high volatility of prices, the state is not able to ensure the preservation of their value.”

Read also: Russia’s telecom regulator Roskomnadzor may ban 17 crypto exchange

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