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- Chinese local authorities sold seized crypto currencies for financing a local economy.
- China seized 15K BTC because the prohibition of cryptocurrencies launches a debate on regulations.
While countries like the United States are planning a cryptic future, China is used by a different approach, continuing to take the Crypto currency, including Bitcoin (BTC).
This led to a sudden increase in the amount of the crypto of the property seized by the Government.
The authorities seized 15,000 BTC, worth $ 1.4 billion, from illegal transactions, which encouraged local officials to find ways to have them.
The sale of seized cryptocurrencies has become the main source of local government revenue, which they have joined with private companies to turn their property into cash for public finances.
However, these methods of delay in the conflict are with the Chinese prohibition of crypto trading.
According to a reportChina is missing clear rules for exhausted digital property, resulting in inconsistencies and concerns due to corruption.
In order to address this growing question, senior judges, police and lawyers discuss potential regulatory changes.
According to the sources, the Chinese central bank is best suited to manage these crypto property – whether it is sold abroad or establishing a crypto reserve.
Criminal cases involving a bump of bitcoin
As discussions about how to deal with seized crypto currencies continue, the number of crypto crime has increased. According to the Blockchain security company, Safeis, the crimes of crime crimes have jumped at $ 59 billion in 2023 ten times.
China in 2024 filed lawsuits against 3,032 individuals involved in money laundering with the crypt. This increase in the crime crime is aligned with an increase in state penalties and revenue of 65% of consolidated property in the last five years.
As a result, seized crypto currencies have become a significant source of revenue for local authorities in the crypto-technical cities.
Current Crypto Market Status in China
Officially, crypto trading is forbidden in China. As such, there are no rules and regulations that help regulate even private companies that help local authorities put off the seized Bitcoin and other tokens.
Source: Bitbo
However, despite the ban, the significant proportion of the Chinese population has a crypto currency.
According to a report, estimated 5.5% of Chinese population, or 78 million people, owns different crypto assets. In particular, China owns 194,000 BTC worth $ 16.3 billion, making it the second largest carrier behind the United States.
With such a huge adoption rate, the lack of legal clarity and the overall prohibition of trading is especially problematic for the wider crypto market.
Therefore, the regulation of the Chinese Government on the CRIPTO trade is interfering with industrial growth. A legal clarification that allows trading this assets could increase bitcoin and other tokens by increasing demand.
Equally, when there is a proper regulation, it is easy to suppress and in turn reduce criminal activity associated with crypto currency.
The current regulatory vacuum leaves room for more criminal activities because cryptocurrency is becoming more popular.
