China is currently considering how to manage the billions of dollars in cryptocurrencies confiscated from illicit activities. Despite a national ban on crypto trading, local governments have partnered with private companies to sell these digital assets.
The absence of standardized regulations has led local governments to devise plans for disposing of cryptocurrencies.
According to transaction and court documents reviewed by Reuters, these governments have been using private companies to exchange seized digital coins for cash, helping to replenish public funds in a slowing economy.
Zhongnan University of Economics and Law professor Chen Shi noted that such disposals are “a makeshift solution that, strictly speaking, does not fully align with China’s current ban on crypto trading.”
