🇨🇳 China debates how to handle criminal crypto cache 🤑
China's growing pile of cryptocurrencies seized from illegal transactions is prompting local governments to find ways to dispose of the hoard and spurring calls from courts and the financial industry for better regulation.
🤐 Lawyers said the lack of rules around how authorities should handle seized bitcoin and other tokens, whose trading is banned on the mainland, has spawned inconsistent and opaque approaches that some fear could embolden lawbreakers and foster corruption.
China's local governments held an estimated 15,000 bitcoins worth $1.4 billion at the end of last year, ranking the state as the world's 14th biggest holder of the cryptocurrency, said bitcoin investment firm River.
Blockchain service provider Bit Jungle said it is legitimate for private companies to help local governments dispose of cryptocurrencies, as long as they ensure safety of the assets, sell them through licensed offshore exchanges, and comply with capital management rules.
"It is a highly profitable business that attracts more and more participants," said Sun Jun, a crypto-focused lawyer and a senior partner at Shanghai Landing Law Offices.
