Karma Scissors, zHelms, FM?

Question for people playing a version that already has Karma Scissors (assuming there is one?) :
When you use Karma Scissors on an item, say a zHelm, does the item become a regular tradeable one until it comes into possession of another character? (Meaning: you can put it in storage, or in a store)
Or can it only be traded with another character?

When it contacts another player, meaning storage works. It removes the tradability completly untill it recontacts another player.