China Considers Liquidating 15,000 Seized Bitcoins Amid Economic Strain
A Reuters report indicates that China may liquidate large amounts of confiscated Bitcoin, potentially impacting BTC’s price. Local governments are reportedly collaborating with private firms to convert seized Bitcoin into cash to support strained public finances amid a slowing economy.
Key Points
- China could offload approximately 15,000 Bitcoin despite an existing ban on crypto trading.
- Legal experts call for clearer regulations regarding the liquidation process.
- Confiscated digital coins have raised concerns about corruption and increased crypto-related crimes, which surged to 430.7 billion yuan (around $59 billion) in 2023.
- Local authorities have sold cryptocurrencies worth over 3 billion yuan offshore, converting USD proceeds to yuan for local finances.
- Debate exists on whether China's central bank should manage these assets or create a crypto reserve, similar to proposals in the US.
- China's estimated 15,000 Bitcoins make it one of the largest institutional holders globally, partly from crackdowns on illicit activities.
- The origins of some holdings include seizures from high-profile schemes like PlusToken, with uncertainty surrounding their current status.
At press time, BTC is valued at $84,071.
