icon
icon
icon
icon
🏷️$300 Off
🏷️$300 Off

News /

Articles /

China's Local Governments Sell Seized Bitcoin for $1.4 Billion

Coin WorldWednesday, Apr 16, 2025 1:06 am ET
1min read

Local governments in China are reportedly exploring methods to dispose of seized cryptocurrencies, facing obstacles due to the country's ban on crypto trading and exchanges. The lack of clear regulations on how authorities should handle seized crypto has led to inconsistent and opaque approaches, raising concerns about potential corruption.

Chinese local governments are utilizing private companies to sell seized cryptocurrencies in offshore markets, exchanging them for cash to bolster public finances. These sales have become a substantial source of income, with local governments holding approximately 15,000 Bitcoin (BTC) worth $1.4 billion at the end of 2023. China is estimated to hold around 194,000 BTC, valued at approximately $16 billion, making it the second-largest nation Bitcoin holder behind the US.

Professor Chen Shi from Zhongnan University of Economics and Law commented that these sales are a temporary solution that does not fully align with China’s current ban on crypto trading. The issue has been compounded by a surge in crypto-related crimes, including online fraud, money laundering, and illegal gambling. In 2024, the state sued over 3,000 individuals involved in crypto-related money laundering.

Shenzhen-based lawyer Guo Zhihao suggested that the central bank is better equipped to manage seized digital assets and should either sell them overseas or establish a crypto reserve. Ru Haiyang, co-CEO at a crypto exchange, echoed this suggestion, proposing that China could keep forfeited Bitcoin as a strategic reserve, similar to actions taken by the US. Additionally, creating a crypto sovereign fund in regions where crypto trading is legal has been proposed as a solution.

This issue has garnered attention amidst rising US-China trade tensions and plans to regulate stablecoins and foster growth in the crypto industry. Several industry observers have suggested that China’s tariff response could lead to a devaluation of the local currency, potentially driving a flight to crypto. The central bank's role in managing seized digital assets and the potential for a strategic crypto reserve highlight the evolving landscape of cryptocurrency regulation and its implications for public finances and economic stability.

Comments

Add a public comment...
Post
User avatar and name identifying the post author
Urselff
04/16
Regulators playing catch-up like little kids in a sandbox.
0
Reply
User avatar and name identifying the post author
UpbeatBase7935
04/16
US-China tensions = crypto gains? Maybe 🤔
0
Reply
User avatar and name identifying the post author
breakyourteethnow
04/16
$AAPL and $TSLA got nothing on China's crypto strategy. 🚀
0
Reply
User avatar and name identifying the post author
Oleksandr_G
04/16
@breakyourteethnow China's crypto moves are like a meme stock rally. 🤔 Wonder if they'll YOLO on Bitcoin next.
0
Reply
User avatar and name identifying the post author
NeighborhoodOld7075
04/16
Holding $BTC like it's 1999 all over again.
0
Reply
User avatar and name identifying the post author
Throwaway420_69____
04/16
@NeighborhoodOld7075 Are you bullish on BTC?
0
Reply
User avatar and name identifying the post author
ComfortableAd2723
04/16
@NeighborhoodOld7075 True, feels like '99.
0
Reply
User avatar and name identifying the post author
SocksLLC
04/16
China's crypto moves feel like a game of musical chairs. Ban trading, but sell seized coins? 🤔
0
Reply
User avatar and name identifying the post author
Zestyclose_Gap_100
04/16
Gotta love the volatility, keeps trading spicy 🌶️
0
Reply
User avatar and name identifying the post author
howtospellsisyphus
04/16
If China sells their BTC stash, could boost public finances, but doesn't align with the trading ban. Hmm.
0
Reply
User avatar and name identifying the post author
Puginator
04/16
Central bank handling seized assets? Better than local gov's opaque approach. More control, less chaos.
0
Reply
User avatar and name identifying the post author
superbilliam
04/16
China's crypto moves: more questions than answers.
0
Reply
User avatar and name identifying the post author
qw1ns
04/16
China's handling of seized crypto feels like a game of regulatory hopscotch. Who benefits more, the state or private firms? 🤔
0
Reply
User avatar and name identifying the post author
S_H_R_O_O_M_S999
04/16
Wow!Those $BTC whale-sized options block were screaming danger! � Closed positions just in time profiting more than $242
0
Reply
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App