Facing unresolved trade tensions between the US and China, which have resulted in an economic slowdown, local Chinese governments are turning towards cryptocurrencies. Despite a ban on cryptocurrency trading within the country, they’re liquidating seized assets through private companies to address revenue shortfalls. This action has raised concerns about potential corruption and lack of clarity regarding these processes. 15,000 Bitcoin have been liquidated, according to Reuters, prompting calls for official recognition of cryptocurrencies as assets. Experts have pointed out that this approach is only a temporary solution while demanding clearer regulations and possibly even the central government taking over seized Bitcoin. China currently holds a significant amount of Bitcoin, ranking second globally after the US. As concerns about illicit activities and increased seizures rise, some experts suggest China could establish a strategic crypto reserve using confiscated Bitcoin. This information is for informational purposes only and should not be construed as investment advice.