Crypto Liquidation Boosts China Public Finances

Chinese Local Governments Liquidate Seized Crypto Assets

• Chinese local governments held an estimated 15,000 Bitcoin, valued at $1.4 billion by the end of last year.
• Authorities are using private firms to sell seized crypto assets from illegal activities.
• The practice occurs within a regulatory gray area due to China’s crypto trading ban since September 2021.
• Shenzhen-based Jiafenxiang has sold over 3 billion yuan ($410 million) worth of crypto since 2018 for cities in eastern China.

Chinese authorities are selling seized crypto assets through private firms to support public finances amid economic challenges. By the end of last year, they held approximately 15,000 Bitcoin, valued at $1.4 billion. This activity continues despite a national ban on crypto trading enforced since September 2021.