China's Local Governments Turn to Seized Crypto Sales Amid Trading Ban

Local governments in China are reportedly trying to sell seized cryptocurrencies, despite the country's ban on crypto trading. The absence of clear regulations on how to manage confiscated crypto has led to various inconsistent methods that some legal experts believe could encourage corruption. Local authorities are utilizing private firms to sell these cryptocurrencies in offshore markets for cash, aimed at refilling public funds. At the end of 2023, they were reportedly holding around 15,000 Bitcoin, valued at approximately $1.4 billion, and these sales have provided a notable income source. China is estimated to possess around 194,000 BTC, making it the second-largest holder after the US. Experts suggest that the central bank should take charge of these digital assets, possibly by selling them abroad or establishing a crypto reserve. Additionally, the rise in crypto-related crimes, such as fraud and money laundering, has drawn attention to this issue, especially amid increasing trade tensions between the US and China.