Chinese Local Governments Selling Seized Bitcoin
China’s increasing accumulation of cryptocurrencies from illegal transactions is leading local governments to seek methods for disposal and prompting calls from courts and the financial sector for improved regulation.
Due to the absence of clear guidelines on handling seized Bitcoin and other tokens, whose trading is banned in China, lawyers highlight inconsistent and unclear practices that could encourage lawbreakers and foster corruption.
Attorneys, along with senior judges and police, are discussing potential changes to regulations that could soon alter the treatment of confiscated virtual currencies. This could significantly impact China’s crypto industry, coinciding with heightened Sino-U.S. tensions during Donald Trump’s second presidency, alongside his plans to deregulate cryptocurrencies and establish a Bitcoin reserve.
