China is currently trading of administration and billions of dollars in the cryptocurrency confiscated due to the illegal activities.
Although trading in Encryption It is prohibited at the national level in China, local governments have cooperated with private companies to sell these digital assets.
The lack of unified local governments regulations has made plans to get rid of cryptocurrencies.
According to the transactions and the court, Reuters documents, lOCAL governments use private companies to sell seized digital currencies in exchange for cash to renew the public tanks that are weaving the economy.
Chen Shi, Professor Chen Shi, said that such actions are “a temporary solution, not fully in line with the current ban on China on the trading of encryption.”
Local governments benefit from encryption attacks amid crime elevations
The discussion comes at a time when crimes that involve encryption are increasing in China. In 2023, the money related to the illegal encryption activities increased to nearly 431 billion yuan – or nearly $ 59 billion. This is an increase of 10 times over the previous year.
In the same year, more than 3,000 people faced a lawsuit to launder money related to encrypted currencies. These cases are overwhelmed by the Chinese court system and pressure the police.
More encryption crimes, of course, means more money for local governments. Revenue from penalties and asset seizures amounted to 378 billion yuan last year, which is a record and jumped by 65 % of five years.
This sudden flow of encryption wealth raises dangerous concerns. Some local governments have become worrying to these digital surprises to cover their expenses. It is a risky trend that can distort budget priorities and create unhealthy financial dependency.
According to Jiafenxiang, 3 billion of digital assets since 2018 in Jiangsu cities.
Liu Hongine, a lawyer who advises local governments on coding issues, notes that digital-convertible currencies are easily and unknown across the border-are increasingly common to tools for criminals.
Experts defend the central administration of the seized encryption assets in China
Lawyers such as Quh Zhio argue that the Chinese Central Bank must supervise all the confiscated digital assets. Instead of just throwing coins on the market, the government can store it in a national reserve.
This thought is also reflected in the most modern strategy of President Donald Trump, which put itself behind building the Bitcoin Strategic Reserve of the United States.
But China is the main righteousness that can learn from the most open and organized encryption framework in Hong Kong, said Hashkey Co-CEO RU HaIYANG- The largest licensed encryption exchange in Hong Kong. He even proposes the “sovereign encryption box” hosted in Hong Kong.
Winston Ma, former director of the management at China Investment Corporation, has loaned this. He argues that the central administration will ensure that China derives the maximum value of the seized encryption, preventing abuse and incompetence.
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