China Investigates Seized Crypto: Could a National Reserve Form?

China grapples with its growing collection of seized cryptocurrency, prompting discussions about legal recognition and even a national crypto reserve. As enforcement actions against illegal activity increase, the Chinese government is considering a new path forward for these digital assets. Officials are exploring whether they should receive formal judicial recognition. If approved, this could mark a significant shift in China’s approach to digital currencies from outright bans towards a more nuanced regulatory framework.