Here is the situation: China has a growing hiding place of confiscated crypto, billions of dollars, seized by criminal surveys. But now that the parts are in detention, the big question is: what exactly should they do? It seems To be limited options surrounding the coins in cryptography entered in China.
It’s not a simple moment “sell it”. Officially, crypto trading is prohibited in continental China. However, law enforcement agencies in different provinces have discreetly cashed the assets seized through third -party companies, transforming them into state income. This has led to a legal gray area where crypto is prohibited from the public, but is still apparently useful for local government chests.
Since there are no clear rules on what to do with the cryptography seized, the authorities have managed it in all kinds of confusing and secret ways. According to a Reuters report, some lawyers fear that this lack of structure can open the door to the shady behavior.
China secretly sells Bitcoin seized to stimulate their economy?
Local Chinese governments are quietly unloading the cryptographic assets seized – despite a strict national ban on cryptographic trade – to fill in public chests while the economy vacillates.
They would have held around 15,000 bitcoins … pic.twitter.com/n9ez5zuedp
– Mario Nawfal (@marionawfal) April 16, 2025
China secretly sells Bitcoin seized to stimulate their economy?And people are starting to notice. Some have stressed that China has sold part of its crypto seized. In addition, legal researchers and politics experts in China call for clearer laws on how these digital assets should be managed. Some say that it is time to officially recognize the crypto as a form of goods under Chinese law, not to relaunch trade but to give at least the courts and regulators a framework to manage the parts seized in a transparent and standardized manner.
Without this clarity, each region seems to do its own thing, which can lead to mismanagement or, worsecorruption.
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Economic implications and strategic considerations
It’s not just a legal headacheIt is Financial Also.
In 2023 alone, China said nearly $ 59 billion linked to criminal affairs related to crypto. It is a massive piece of digital active ingredients now in the hands of the state, and it has triggered debates on the question of whether the sale makes strategic sense, Or if there is a smarter game.
News writing
Local governments in China sell a crypto seized to complete their treasure.
Despite the ban on crypto exchanges in China, local governments use private companies to unload their assets.
This almost explains the dumping ground even before Tariff News hits the … pic.twitter.com/oszstdgcg7
– abbot case (@cas_abbe) April 16, 2025
Some experts have launched the idea of creating a state -managed cryptography reserve. Instead of throwing assets on the market, China could hold them. This is similar to the way countries store gold or foreign currencies. It would be a way to remain financially flexible in a world where crypto still plays a major role worldwide, even if it is prohibited at home.
It is not official political still, but The idea underlines how uncertain and complex for Chinese regulators is uncertain.
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Calls on centralized crypto management of China
At present, there is no central authority responsible for managing these cryptographic assets seized. This is another problem that experts push to solve.
A proposal? Create an office dedicated under the Popular Banque of China which would supervise storage, management and, if necessary, the sale of confiscated crypto. This would reduce the strategies for applying patchwork that we see now and would give the country a unified approach that corresponds to its global financial game book.
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This would also strengthen responsibility, something wrong when treated volatile assets that can be poorly used or poorly managed without appropriate surveillance.
The China crypto has created a new problem: what happens when you get the things you have prohibited?
So what about now for the Chinese crypto?
Right now, there is no easy answer. The system is disorderly, incoherent and in a legal gray area. But the pressure is added to legal experts, economists and even within the government itself to clean things.
This could mean a centralized reserve, clearer laws or stricter surveillance. But one thing is certain: China cannot ignore the crypto mountain on which it sits forever.
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Main to remember
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China holds billions of criminal confiscated crypto case. But they lack clear laws on how to manage, store or sell assets.
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Despite the ban on the crypto, some provinces would have converted assets seized with state income through third -party companies.
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Legal experts call for formal recognition of Crypto as property under Chinese law to create a transparent framework to manage the assets seized.
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Ideas such as the creation of a state -managed cryptography reserve or a central authority under the Popular Banque of China are being executed to manage strategically assets.
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Without centralized supervision, the current approach to patchwork risks mismanagement, legal inconsistencies and potential corruption.
The China position weighs options to manage billions of billions of confiscated crypto appeared first on 99Bitcoins.
