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Chinese officials plead for regulations on cryptocurrencies to cope with seized assets.
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Despite a commercial ban, local Chinese governments have sold cryptographic assets seized through private companies.
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While continental China continues to maintain its ban on cryptocurrency, Hong Kong pushes to become a cryptocurrency center.
Once the main trading and mining center of cryptocurrency, China has long ceded its domination in the United States as a result of a series of suppressive regulatory measures, especially A general ban in 2021.
Now, almost four years later, the Asian economic giant can consider a potential softening of its treatment of cryptocurrencies, but not for the reasons that many would have planned.
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According to a reuters reportChinese law enforcement officials, lawyers and financial industry participants are pressure for judicial recognition of cryptocurrencies as an active in a potential change in benchmark for the country’s cryptocurrency industry.
The calls come as the country sees a peak of assets of cryptocurrency of criminal affairs. The absence of clear rules on how to manage these crises is to raise corruption problems.
So far, Chinese local governments have sold these cryptocurrencies entered for species thanks to private companies to strengthen their chests in the midst of an economic slowdown. More specifically, the assets are sold for American dollars on foreign markets and converted to Yuan by local banks before being transferred to local government accounts holding public funds.
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Using this method, a local technological company, Jiafenxiang, sold more than 3 billion yuan, or about $ 41 million, cryptocurrency assets on behalf of three local governments, Xuzhou, Hua’an and Taizhou, since 2018.
But most officials argue that current methods are inconsistent and opaque, at least one expert arguing that sales go against the ban on cryptographic trading. In January seminar On the question, those responsible would have suggested everything, from the establishment of clear guidelines to a strategic reserve Like the Trump administrationwhich could all be a boon for industry by opening the way to greater adoption.
