Seized Digital Assets Fuel Local Budgets Despite National Ban
- Chinese local governments quietly sold off seized crypto using private firms via offshore exchanges, converting proceeds into yuan despite a national trading ban.
- Over US$400M in assets were liquidated through vendors like Shenzhen-based Jiafenxiang for cities such as Xuzhou and Taizhou, amid unclear regulations.
- Lawyers urged the central bank to take control, warning the legal grey area invites corruption and hinders the creation of a formal national crypto reserve.
China’s stash of seized cryptocurrencies keeps on growing, but local governments are quietly selling it off using private firms to liquidate the confiscated assets, then turning them into yuan, often through offshore channels.
All of this,…
