04-16-2025, 09:14 AM
China selling seized crypto to top up coffers as economy slows: Report
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjNjOWEtMTgyOS03NzE4LTg5MWItOTI3ZWVhNjUxODky.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjNjOWEtMTgyOS03NzE4LTg5MWItOTI3ZWVhNjUxODky.jpg" alt="China selling seized crypto to top up coffers as economy slows: Report"></p><p>Local governments in China are reportedly seeking ways to offload seized crypto while facing challenges due to the country’s ban on crypto trading and exchanges.<p>The absence of clear rules on how authorities should manage seized cryptocurrency has led to “inconsistent and opaque approaches,” which some lawyers fear could open the door to corruption, <a data-ct-non-breakable="null" href="https://www.reuters.com/world/china/china-debates-how-handle-criminal-crypto-cache-2025-04-15/" rel="nofollow noopener" target="_blank" text="null" title="https://www.reuters.com/world/china/china-debates-how-handle-criminal-crypto-cache-2025-04-15/">according</a> to an April 16 report by Reuters.</p><p>Chinese local governments are using private companies to sell seized cryptocurrencies in offshore markets in exchange for cash to replenish public coffers, Reuters reported, citing transaction and court documents. </p><p>The local governments reportedly held approximately 15,000 Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) worth $1.4 billion at the end of 2023, and the sales have been a significant source of income.</p><p>China holds an estimated 194,000 BTC worth approximately $16 billion and is the second largest nation Bitcoin holder behind the US, <a data-ct-non-breakable="null" href="https://treasuries.bitbo.io/#countries" rel="null" target="null" text="null" title="null">according</a> to Bitbo. </p><p>Zhongnan University of Economics and Law professor Chen Shi told Reuters that these sales are a “makeshift solution that, strictly speaking, is not fully in line with China’s current ban on crypto trading.”</p><figure><img src="https://s3.cointelegraph.com/uploads/2025-04/01963cd7-ba2d-7988-8fe4-ce7d86f96132" title="" alt="China selling seized crypto to top up coffers as economy slows: Report"><figcaption style="text-align: center;"><p><em>Countries and governments that hold BTC. Source: </em><a data-ct-non-breakable="null" href="https://treasuries.bitbo.io/#countries" rel="null" target="null" text="null" title="https://treasuries.bitbo.io/#countries"><em>Bitbo</em></a></p></figcaption></figure><p>The issue has been exacerbated by a rise in crypto-related crime in China, ranging from online fraud to money laundering to illegal gambling. Additionally, the state sued more than 3,000 people involved in crypto-related money laundering in 2024. </p><h2>China crypto reserve floated as solution</h2><p>Shenzhen-based lawyer Guo Zhihao opined that the central bank is better positioned to deal with seized digital assets and should either sell them overseas or build a crypto reserve.</p><p>Ru Haiyang, co-CEO at Hong Kong crypto exchange HashKey, echoed the suggestion saying that China may want to keep forfeited Bitcoin as a <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/trumps-strategic-bitcoin-reserve-and-digital-asset-stockpile-explained" rel="null" target="null" text="null" title="null">strategic reserve</a> as US President Donald Trump is doing. </p><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-rebounds-as-traders-spot-china-weaker-yuan-chart-but-us-trade-war-caps-80-k-btc-rally" rel="null" target="null" text="null" title="null"><em><strong>Bitcoin rebounds as traders spot China ‘weaker yuan’ chart, but US trade war caps $80K BTC rally</strong></em></a></p><p>Creating a crypto sovereign fund in Hong Kong, where crypto trading is legal, has also been proposed.</p><p>This issue has gained attention amid rising US-China trade tensions and Trump’s plans to regulate stablecoins and foster growth and innovation in the crypto industry.</p><p>Several industry observers have <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/china-counters-tariffs-yuan-devaluation-bullish-btc" rel="null" target="null" text="null" title="null">suggested</a> that China’s tariff response could result in a devaluation of the local currency, which may result in a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/china-tariff-response-may-mean-more-capital-flight-to-crypto-hayes" rel="null" target="null" text="null" title="null">flight to crypto</a>. </p><p><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-mine-soldiers-crypto-pickup-line-asia-express/" rel="null" target="null" text="null" title="null"><em><strong>Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express</strong></em></a></p><template data-name="subscription_form" data-type="consulting_newsletter" label="Subscription Form: Consulting Newsletter"></template></p>
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https://cointelegraph.com/news/china-sel...er_inbound
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjNjOWEtMTgyOS03NzE4LTg5MWItOTI3ZWVhNjUxODky.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjNjOWEtMTgyOS03NzE4LTg5MWItOTI3ZWVhNjUxODky.jpg" alt="China selling seized crypto to top up coffers as economy slows: Report"></p><p>Local governments in China are reportedly seeking ways to offload seized crypto while facing challenges due to the country’s ban on crypto trading and exchanges.<p>The absence of clear rules on how authorities should manage seized cryptocurrency has led to “inconsistent and opaque approaches,” which some lawyers fear could open the door to corruption, <a data-ct-non-breakable="null" href="https://www.reuters.com/world/china/china-debates-how-handle-criminal-crypto-cache-2025-04-15/" rel="nofollow noopener" target="_blank" text="null" title="https://www.reuters.com/world/china/china-debates-how-handle-criminal-crypto-cache-2025-04-15/">according</a> to an April 16 report by Reuters.</p><p>Chinese local governments are using private companies to sell seized cryptocurrencies in offshore markets in exchange for cash to replenish public coffers, Reuters reported, citing transaction and court documents. </p><p>The local governments reportedly held approximately 15,000 Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) worth $1.4 billion at the end of 2023, and the sales have been a significant source of income.</p><p>China holds an estimated 194,000 BTC worth approximately $16 billion and is the second largest nation Bitcoin holder behind the US, <a data-ct-non-breakable="null" href="https://treasuries.bitbo.io/#countries" rel="null" target="null" text="null" title="null">according</a> to Bitbo. </p><p>Zhongnan University of Economics and Law professor Chen Shi told Reuters that these sales are a “makeshift solution that, strictly speaking, is not fully in line with China’s current ban on crypto trading.”</p><figure><img src="https://s3.cointelegraph.com/uploads/2025-04/01963cd7-ba2d-7988-8fe4-ce7d86f96132" title="" alt="China selling seized crypto to top up coffers as economy slows: Report"><figcaption style="text-align: center;"><p><em>Countries and governments that hold BTC. Source: </em><a data-ct-non-breakable="null" href="https://treasuries.bitbo.io/#countries" rel="null" target="null" text="null" title="https://treasuries.bitbo.io/#countries"><em>Bitbo</em></a></p></figcaption></figure><p>The issue has been exacerbated by a rise in crypto-related crime in China, ranging from online fraud to money laundering to illegal gambling. Additionally, the state sued more than 3,000 people involved in crypto-related money laundering in 2024. </p><h2>China crypto reserve floated as solution</h2><p>Shenzhen-based lawyer Guo Zhihao opined that the central bank is better positioned to deal with seized digital assets and should either sell them overseas or build a crypto reserve.</p><p>Ru Haiyang, co-CEO at Hong Kong crypto exchange HashKey, echoed the suggestion saying that China may want to keep forfeited Bitcoin as a <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/trumps-strategic-bitcoin-reserve-and-digital-asset-stockpile-explained" rel="null" target="null" text="null" title="null">strategic reserve</a> as US President Donald Trump is doing. </p><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-rebounds-as-traders-spot-china-weaker-yuan-chart-but-us-trade-war-caps-80-k-btc-rally" rel="null" target="null" text="null" title="null"><em><strong>Bitcoin rebounds as traders spot China ‘weaker yuan’ chart, but US trade war caps $80K BTC rally</strong></em></a></p><p>Creating a crypto sovereign fund in Hong Kong, where crypto trading is legal, has also been proposed.</p><p>This issue has gained attention amid rising US-China trade tensions and Trump’s plans to regulate stablecoins and foster growth and innovation in the crypto industry.</p><p>Several industry observers have <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/china-counters-tariffs-yuan-devaluation-bullish-btc" rel="null" target="null" text="null" title="null">suggested</a> that China’s tariff response could result in a devaluation of the local currency, which may result in a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/china-tariff-response-may-mean-more-capital-flight-to-crypto-hayes" rel="null" target="null" text="null" title="null">flight to crypto</a>. </p><p><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-mine-soldiers-crypto-pickup-line-asia-express/" rel="null" target="null" text="null" title="null"><em><strong>Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express</strong></em></a></p><template data-name="subscription_form" data-type="consulting_newsletter" label="Subscription Form: Consulting Newsletter"></template></p>
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https://cointelegraph.com/news/china-sel...er_inbound