Bitcoin Faces Pressure As Report Flags Chinese Sell-Off Plans
China may liquidate large amounts of confiscated Bitcoin, potentially impacting BTC prices. Local governments are reportedly working with private companies to convert seized Bitcoin into cash to support strained public finances amid economic slowdown. Legal experts call for clearer regulations as these actions conflict with China's ban on crypto trading. Concerns about corruption and rising crypto-related crimes are highlighted, with offenses involving 430.7 billion yuan ($59 billion) in 2023. Local authorities have sold cryptocurrencies worth over 3 billion yuan in offshore markets. Discussions on reform include suggestions for the central bank to manage seized assets and create a centralized disposal system. China’s local governments are estimated to hold 15,000 Bitcoins, making it a significant institutional holder. The origins of these holdings include seizures from illicit activities like the PlusToken Ponzi scheme. As of now, BTC trades at $84,071.
