Sweden takes action: crypto assets and Bitcoin in its sights!

Sweden takes action: crypto assets and Bitcoin in its sights!

Swedish Justice Minister Gunnar Strömmer has called on local authorities to increase raids to seize assets, including cryptocurrencies. The move is related to a 2024 law that allows luxury goods and cash to be confiscated from individuals even if there is no ongoing investigation. Loud Cointelegraph Police, tax authorities and enforcement authorities should increase their efforts in cases involving crypto assets, real estate and corporate assets.

Strömmer made it clear that over $8.3 million in criminal profits have already been confiscated since the law came into effect in November 2024. The law allows for the confiscation of assets resulting from criminal acts, regardless of whether the individuals concerned have been convicted of a crime or not. The regulation is particularly controversial because it also applies if a person's income is not proportional to their assets or their origin cannot be explained.

Controversies and specific seizures

In the first few weeks after the law came into force, the first spectacular confiscations took place. For example, $137,000 and a Rolex watch were confiscated from a woman at Gothenburg-Landvetter Airport. Additionally, approximately $1 million in total value of merchandise was seized in the first week of enforcement. These measures are part of efforts to combat violent crime in Sweden.

However, in the political debate there are also suggestions on how to deal with Bitcoin. In April 2024, MP Rickard Nordin called on Swedish Finance Minister Elisabeth Svantesson to consider Bitcoin as a reserve currency. He presented a proposal that Sweden could adopt the US's budget-neutral approach, whereby confiscated Bitcoins should not be sold but transferred to national reserves. In this context, Svantesson plans to examine the proposal in detail.

Debate about Bitcoin as a reserve currency

The discussion about Bitcoin is gaining momentum in Sweden. While several other countries, such as El Salvador, have adopted Bitcoin as a secondary currency, Sweden is also exploring the possibility of including it in government foreign exchange reserves. However, Swedish Central Bank Governor Erik Thedéen expressed skepticism about Bitcoin's role in the Swedish financial system. He described Bitcoin as too volatile and speculative.

Although Sweden has in the past called for regulators to consider a possible EU-wide ban on energy-intensive proof-of-work mining, there is currently no law barring the inclusion of virtual currencies in foreign exchange reserves. However, the global trend shows a growing interest in Bitcoin as a reserve asset as countries such as Switzerland, Poland, Germany and Japan are also exploring integrating Bitcoin into their foreign reserves.

Discussion of these possibilities reflects the ever-growing debate about the role of Bitcoin and cryptocurrencies in modern economies and could have consequences for the economic landscape not only in Sweden, but also across the European Union.