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The South Korean government is set to auction off roughly $590,000 worth of Bitcoins later this year, according to Seoul Economic Daily.
The agency that manages assets for the South Korean government revealed that digital currencies such as Bitcoin can be auctioned off by the government as they are not considered to be non-auctionable assets.
A statement by KAMCO reveals:
With the exception of currencies, assets, and securities are auctionable by the South Korean government. Although it is the first auction involving a digital currency overseen by the South Korean government, investors and the public can consider bitcoin as an asset that changes in value over time.
Auctioning seized items
Items that are seized from illegal operations can be included in a system called “on-bid.”
Since gambling is strictly prohibited in the country, the 216 Bitcoins seized by the government were allegedly used for illicit financial activities operated by 33-year old Ahn, together with seven other suspects, on his web-based marketplace, which accepts Bitcoin as payment for inappropriate content such as gambling and pornography.
Pricing expected to be lower than the existing market rate
Though digital currencies are in high demand, the seized 216 Bitcoins will probably be sold at lower rates unparalleled to the current exchange market rates from platforms such as Bithumb and Korbit.
The money raised from the auction will be given to the South Korean Treasury for safekeeping and will be considered as an additional asset for the government.