China’s Seized Crypto Assets: A Growing Revenue Stream, But Regulatory Gap Persists

Despite China’s ban on cryptocurrency trading, seized digital currencies are generating substantial revenue for local governments. This is due to a continuous flow of illegal crypto transactions that are fueling this growing source of income. Reuters reports that local authorities are turning to private firms to convert these tokens into cash. Professor Chen Shi argues that this approach is not completely compliant with the ban and necessitates greater regulatory oversight as crypto crime increases, according to Reuters.