Regional authorities in China are selling cryptocurrencies taken during legal cases to bring in extra money.
These governments are working with private companies to sell the crypto outside China, since trading is banned within the country.
According to a report published on April 16, there are no clear national rules on how to manage crypto that has been seized. This has led to confusion and differences in how local agencies handle the process. Some lawyers believe this lack of structure could make it easier for people to act dishonestly.
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Documents show that local governments held around 15,000 Bitcoin
$83,902.97
by the end of 2023. At the time, the value of these holdings was estimated at $1.4 billion. Selling these assets has helped raise funds for public use. Overall, China is believed to hold nearly 194,000 Bitcoin, worth about $16 billion.
Chen Shi, a professor at Zhongnan University of Economics and Law, told Reuters that selling crypto this way is only a short-term solution and does not fully align with China’s current restrictions on digital currency trading.
According to Shenzhen-based lawyer Guo Zhihao, the central bank should manage the assets and either sell them in legal markets overseas or keep them as part of a reserve.
Meanwhile, the US government has recently explored ways to increase its Bitcoin holdings without using taxpayer funds. What options are being considered? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
