China is exploring options for managing billions in seized cryptocurrency due to rising digital asset-related crimes. Local governments are collaborating with private firms to monetize these assets despite a national ban on cryptocurrency trading.
In 2023, illicit cryptocurrency activities resulted in cash flows of nearly 431 billion yuan (approximately 59 billion USD), marking a tenfold increase from the previous year. This surge in crime is overwhelming the court system.
Experts recommend establishing a centralized authority to manage confiscated cryptocurrencies, ensuring regulations and preventing financial misuse while maximizing the potential benefits from seized assets.
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