Amid growing economic challenges and an increasing amount of confiscated cryptocurrencies, local governments in China are increasingly liquidating seized digital assets to bolster weakened public finances.
The practice raises legal and regulatory questions, especially concerning China's total ban on cryptocurrency trading.
China sells confiscated cryptocurrencies to strengthen the treasury
It is reported that China held around 15,000 Bitcoin (BTC) valued at 1.4 billion dollars by the end of 2024. According to River, a Bitcoin investment firm, this places the country among the top 15 BTC holders worldwide.
However, reports suggest that local governments in China are selling cryptocurrencies through private companies despite the national ban.
