China’s sale seizures Crypto to raise the coffers as the economy slows down: Report
Local governments in China have been reported looking for ways to offloading the seized crypto while facing challenges due to the country’s prohibition of trading and crypto exchange.
Lack of policies around how authorities should handle the seized crypto has spawned a “uneven -equivalent and fuzzy approach” that some fear may promote corruption, lawyer said Reuters for a report of April 16th.
Local Chinese governments use private companies to sell seized cryptocurrencies on the offshore markets in exchange for cash to re -provide public coffers, Reuters reported, mentioning transaction and court documents.
Local governments have been reported to be held by approximately 15,000 Bitcoin (Btc) costs $ 1.4 billion by the end of 2023, and sales have become a significant source of income.
China holds an estimated 194,000 BTC worth more than $ 16 billion and is the Bitcoin’s second largest holder behind the US, According to This is a bitbox.
The Zhongnan University of Economics and Law Professor Chen Shi has told Reuters that these sales are a “makeshift solution that, strictly speaking, is not completely in accordance with China’s current prohibition on crypto trading.”
Countries and governments holding BTC. Source: Bitbo
The issue is aggravated by the rise of crypto -related crime in China, from online fraud to money losses to illegal gambling. In addition, the state has filed over 3,000 people involved in crypto -related crypto -related crypto in 2024.
China Crypto Reserve floats as a solution
Shenzhen -based attorney Guo Zhihao chose that the central bank is better positioned to deal with the seized digital assets and should sell them overseas or build a crypto reserve.
Ru Haiyang, Co-Ceo at Hong Kong Crypto Exchange Hashkey, shouted a suggestion saying China could keep the neglected bitcoin as a Strategic Reserve As US president Donald Trump does.
Related: Bitcoin rebounds while entrepreneurs focus ‘Yuan’ chart, but the US Trade War Cap is $ 80k BTC rally
Creating a crypto sovereignty fund in Hong Kong, where crypto trading is legal, also suggested.
This issue has drawn attention to the midst of increasing US-China trade tensions and Trump’s plans to organize Stablecoins and promote growth and change in the crypto industry.
Many industry observers have suggested that China’s tariff response may result in a lowering of local currency, which may result in a Flying to Crypto.
Magazine: The illegal arcade was identified as … a fake bitcoin mine? Soldier Scam in China: Asia Express
