Local governments China started selling confiscated cryptocurrencies for cash through private companies, despite the current ban on cryptocurrency trading in mainland China. They had to do this because of the economic slowdown — they had to fill their coffers somehow.
China has a ban on cryptocurrency trading and mining, while Hong Kong is seeking to become a cryptocurrency center and license trading. The Chinese authorities have engaged local companies to assist in the disposal of confiscated assets. While it is illegal for individuals to trade cryptocurrencies, it remains legal to run a business that helps the government sell crypto.
For example, Shenzhen-based tech company Jiafenxiang has already helped sell more than $408 million worth of cryptocurrencies on offshore markets since 2018, acting on behalf of several local governments in Jiangsu Province.
According to Bitbo, China owns approximately 194,000 BTC, making it the second largest bitcoin-owning nation after the United States, which owns 207,189 BTC.
Also recently China announces plans to start promoting its own cryptocurrencies and yuanto counter the United States in this area.
Source: Reuters
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