$BTC
JUST IN: 🇨🇳 China's local governments sell 15,000 Bitcoin worth $1.25 billion via offshore private entities: Reuters.
China's local governments have been secretly selling seized Bitcoin worth billions of dollars, despite the country's nationwide crypto trading ban in 2021. According to Reuters, 15,000 Bitcoin worth $1.25 billion have been sold via offshore private entities ¹.
This move is not only a contradiction to China's crypto ban but also raises questions about transparency, legality, and market stability. The sales are reportedly being made through private firms, which are helping local governments liquidate confiscated cryptocurrencies ¹.
China held approximately 15,000 Bitcoin worth $1.4 billion at the end of 2024, making it one of the top 15 global holders of the asset ². The country's total Bitcoin holdings are estimated to be around 194,000, worth about $16 billion, making it the second-largest national Bitcoin holder after the US ³.
The motivations behind these sales are largely economic. Local governments in China are facing severe financial strain due to rising debt and slowing growth. By selling seized Bitcoin, they can generate much-needed revenue to fund public services ¹.
However, these sales may have significant implications for the global crypto market. The sudden influx of Bitcoin into the market could lead to price volatility, and some experts warn that it may even spark a market downturn