China is facing an economic slowdown, prompting local governments to liquidate confiscated cryptocurrencies. This raises questions about future regulations on crypto assets.
Economic Slowdown in China
Economic uncertainty caused by tariff tensions with the US is leading to a slowdown in economic growth in China. Local authorities are facing revenue shortfalls.
Liquidation of Cryptocurrencies
Local Chinese governments are selling cryptocurrencies seized through offshore companies. With crypto trading banned, authorities are reportedly using gray areas for liquidation.
Need for New Regulations
As crypto-related crimes and seizures increase, experts and courts are demanding clearer rules for cryptocurrency regulation. Chen Shi, a professor at Zhongnan University, noted that these sales are merely a temporary solution.
The liquidation of confiscated bitcoins by local Chinese authorities highlights the complex state of the market and the urgent need for clear legislation regulating cryptocurrencies.
