The post China’s local authorities liquidate seized crypto to support public finances amid economic slowdown appeared on BitcoinEthereumNews.com.

Key Takeaways Chinese local governments are selling seized crypto assets to support public finances amid an economic slowdown. An estimated 15,000 Bitcoin worth $1.4 billion were held by Chinese local governments by the end of last year. China’s authorities are tapping private firms to sell crypto assets seized from illegal activities to shore up public finances in dealing with economic headwinds, according to a new report from Reuters, citing transactions and court documents that they have reviewed. The practice comes amid a surge in digital asset-related crimes and takes place within a regulatory gray area, as China’s ban on crypto trading has been fully enforced since September 2021. As reported, these transactions have funneled millions of dollars into municipal budgets strained by declining growth and mounting expenditures. However, the trend has exposed a regulatory vacuum. In China, there are no unified national rules on how to handle or dispose of digital assets seized from cases involving fraud, money laundering, online gambling, as well as other illicit activities. Chen Shi, a law professor at Zhongnan University of Economics and Law, said the current approach is a patchwork workaround and “not fully in line with China’s crypto trading ban.” Fearing this could create opportunities for corruption and potentially embolden criminals, legal experts, judges, and law enforcement officials have called for urgent reform. As of the end of 2024, China was estimated to possess nearly 15,000 Bitcoin, valued at approximately $1.4 billion at the time, according to River. Despite the national trading ban, much of these assets have been converted to cash using private companies transacting on foreign crypto exchanges. Selling crypto through offshore exchanges and peer-to-peer platforms is a common method that users have adopted to circumvent the existing ban. Traders on the mainland have employed social media, VPNs, and diverse payment…

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Filed under: News - @ April 16, 2025 11:24 am