Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

China Sells $16 Billion in Seized Bitcoin: Lack of Rules Sparks Major Concerns

Share This Post

The post China Sells $16 Billion in Seized Bitcoin: Lack of Rules Sparks Major Concerns appeared first on Coinpedia Fintech News

China has built up a large stash of cryptocurrencies from illegal activities, and now local governments are looking for ways to sell off the holdings. Courts and financial industry have raised concerns calling out on clearer rules to handle these digital assets. 

Despite its 2021 ban on crypto trading, recent reports reveal that China has been offloading massive Bitcoin stash. Notably, by the end of 2023, local governments in China were holding around 15,000 Bitcoin worth about $1.4 billion and the sales have become a significant source of income to them.

China Offloading Crypto Through Private Firms

China has reportedly sold about 194,000 Bitcoin worth around $16 billion. This makes China the second-largest Bitcoin holder after the U.S., showing its mixed and strategic approach toward cryptocurrencies, according to data from Bitbo

China’s local governments have been selling seized crypptocurrencies through private firms like Jiafenxiang. These firms have reportedly sold over 3 billion yuan in crypto since 2018. The proceeds were converted into yuan and transferred to local finance accounts. How the lack of regulations around these is concerning.

A lack of clear rules on how the Chinese authorities should handle the seized cryptocurrencies has led to confusion and different regions are handling it in inconsistent and unclear ways. This has led to concerns among lawyers that this could encourage illegal behaviours and increase the risk of corruption, as per a report from Reuters

China Considers New Rules

Attorney’s senior judges and police are debating on new rules that could change how seized cryptocurrencies are handled. This could prove to be a major shift in China’s crypto industry, especially amidst the rising US China tensions under Trump’s second term, while Trump plans to deregulate crypto and establish a strategic Bitcoin reserve in US.

However, Professor Chen Shi from Zhongnan University remarked that selling seized crypto is just a temporary fix and doesn’t fully follow China’s crypto ban. He stressed that better rules are urgently needed as more cases and larger amounts of money are involved.

At a January seminar where the issue was discussed, lawyer Guo Zhihao highlighted that China’s ban on crypto trading creates a conflict with local authorities’ need to sell the seized digital currencies. Instead, he suggested that China’s Central bank should look over the process, either by selling the crypto abroad or creating a national reserve, like President Trump is planning in the US.

Although the seminar did not guarantee any changes, most experts agreed that China needs to officially recognise crypto and clear process to handle the seized digital currencies needs to be developed.

Further in 2023, China also witnessed a surge in cypto-related crimes with cases involving internet fraud, money laundering, and illegal gambling. The amount of money tied to these crimes soared to $59 billion, and over 3,000 people were sued for money laundering.

As criminal cases increased, local governments saw a 65% rise in confiscation incomes, reaching a record $378 billion. Seized cryptocurrencies have become a significant financial resource for some cities, further complicating the issue of crypto regulation.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Hits $100K as Institutional Money Pours In

The last time the cryptocurrency topped six figures was in February shortly after reaching its all-time high of $109,11488 in late January BTC Breaks $100K Barrier as Institutions Dive In Bitcoin (

XRP Price Repeating History? 2017-Like Rally To Send Price To $10

Crypto analyst ArShevelev has raised the possibility of history repeating itself for the XRP price If so, the analyst indicated that the altcoin could witness a 2017-like rally, which would send its

Trump Rips Fed Chief as ‘Fool’ After Rate Freeze, Declares ‘Golden Age’ Is Coming

On Thursday, US President Donald Trump blasted the Federal Reserve and its Chair, Jerome Powell, after the central bank kept the federal funds rate unchanged the day prior He hopped onto social media

Ethereum Reclaims $2,000, But Weak MVRV Ratio Signals Bearish Turn: Will Bears Dominate ETH Price?

The post Ethereum Reclaims $2,000, But Weak MVRV Ratio Signals Bearish Turn: Will Bears Dominate ETH Price appeared first on Coinpedia Fintech News The Federal Reserve decided not to change interest

OpenAI launches initiative to spread democratic AI through global partnerships

OpenAI launched a new initiative to help countries build artificial intelligence systems rooted in democratic values, according to a May 7 statement The OpenAI for Countries initiative is part of

Asia Gaming Invests $50 Million in WillBet – A Bet on the Future of Global Gaming

This content is provided by a sponsor PRESS RELEASE In a move reminiscent of SoftBank’s legendary 8-minute decision to back Jack Ma, Asia gaming has announced a $50 million strategic investment in