China Discussing New Rules for Managing Seized Crypto

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China is evaluating new regulations for handling confiscated cryptocurrencies as cases of illegal digital asset use increase.

This discussion comes amidst a rise in cryptocurrency-related criminal cases in China, where digital token trading is banned.

Blockchain security firm SAFEIS reported a substantial increase in crypto crimes last year, with the total amount involved reaching 430.7 billion yuan (approximately US$59 billion) in 2023. These cases encompass fraud, money laundering, and illegal gambling.

Currently, local governments sell confiscated crypto through private firms and convert the proceeds to yuan, though this process lacks standardized regulation.