Despite the ban on cryptocurrency trading in China, local authorities are actively trying to leverage seized crypto assets. This article explores the current situation.
Cryptocurrencies as a Revenue Source
According to a Reuters report, Chinese authorities are turning to private firms to convert seized cryptocurrencies into cash. This comes amid a rise in illegal transactions leading to an increase in confiscated assets.
Conflict of Laws
Lawyer Guo Zhihao noted that there is a conflict between the ban on cryptocurrencies and the need to deal with seized tokens, highlighting the necessity for better oversight in this area.
Regulatory Prospects
Sun Jun, a crypto attorney, speaks about the potential profitability of the business related to the disposal of crypto assets. He emphasizes the need for a clear legal status of virtual currencies and establishing a formal system for their disposal.
Thus, despite the bans, Chinese authorities continue to seek ways to process seized cryptocurrencies, underscoring existing legislative contradictions and the need for clearer regulation in this area.
