China Sells Seized Bitcoin Amid Crypto Ban
Key Takeaways
- Chinese authorities have seized 15,000 Bitcoin (BTC) worth approximately USD 1.4 billion.
- The cryptocurrencies originate from illegal activities and are being sold to finance public expenditures.
- The sale contradicts the nationwide ban on cryptocurrency trading.
- There is a lack of clear legal regulations on how to handle seized digital assets.
- Despite the ban, China remains one of the largest holders of Bitcoin globally.
Why China Seizes Bitcoin
In recent years, Chinese authorities have intensified their crackdown on illegal crypto-related activities. In a recent case, 15,000 BTC were confiscated — equivalent to about USD 1.4 billion. These coins were linked to criminal offences such as money laundering and fraud.
The seized coins are being sold by local governments to fund public budgets. In doing so, they collaborate with private companies that convert the digital assets into fiat currency — that is, government-recognized legal tender.
Contradiction with the Crypto Ban
Although the sale of cryptocurrencies is officially banned in China, local authorities are using seized coins as a source of revenue. This has led to legal uncertainty. There are no unified regulations on how to manage such assets.
Courts, police, and legal experts are currently discussing possible legislative changes. One proposal: the People’s Bank of China should be responsible in the future for managing and liquidating seized cryptocurrencies — for example, through foreign sales or the creation of a state-owned crypto reserve.
Crypto-Related Crime on the Rise
As the crypto market grows, so does the number of criminal offences. According to blockchain security firm SAFEIS, the value of criminal crypto transactions rose to USD 59 billion in 2023 — a tenfold increase.
In 2024, over 3,000 people in China were indicted for crypto-related money laundering. At the same time, authorities reported a 65% increase in revenue from seized assets over the past five years. This shows that cryptocurrencies have become a regular part of the revenue structure in some cities.
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China Remains a Key Player in the Crypto Market
Despite the trading ban, China is one of the largest holders of Bitcoin globally. Around 194,000 BTC worth over USD 16 billion are under state ownership. Estimates suggest that about 78 million Chinese citizens — or 5.5% of the population — hold cryptocurrencies.
This discrepancy between ownership and prohibition creates uncertainty. Without clear legal frameworks, the market remains vulnerable to illegal activity. At the same time, the ban hinders economic development in the crypto sector.
Our Assessment
China faces a regulatory dilemma. On one hand, the state uses cryptocurrencies as a revenue source. On the other hand, trading remains banned. This contradictory situation undermines credibility and impedes long-term progress.
For you as a crypto enthusiast, one thing is clear: the Chinese market remains relevant despite the ban. If regulatory frameworks are established, they could have significant effects on the global crypto market — both in terms of price development and regulatory standards.
Sources
- SAFEIS (Blockchain Security Firm)
- Bitbo (Market Data and Analysis)
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $93,739.00 |
| 24h % | 1.42 % |
| 7d % | 10.87 % |
| 30d % | 6.62 % |
| 60d % | -2.16 % |
| 1y % | 46.74 % |
| Market Cap | $1,861,523,611,840.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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