Chinese municipal authorities are trying to sell the seized cryptocurrency, but they face obstacles caused by the ban on transactions with digital assets inside the country. To solve this problem, they resort to the services of private companies that sell confiscated tokens on foreign markets. In return, they receive cash, which is then sent to the local budget. By the end of 2023, the Chinese authorities had about 15,000 bitcoins on their balance sheet with a total value of $1.4 billion. The sale of these assets has become an important source of replenishment of government revenue. According to Bitbo, China has a total of 194,000 BTC, their value reaches $16 billion. This makes the country the second largest holder of this digital asset among states, second only to the United States. The situation is further complicated by the growth of criminal activity related to cryptocurrencies. The country has recorded an increase in cases of fraudulent transactions, money laundering and illegal online gambling. In 2024 alone, more than 3,000 people were prosecuted for using cryptocurrencies for money laundering.
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