Local governments in China are looking for ways to sell seized cryptocurrencies despite the country's ban on cryptocurrency trading and exchanges.
The absence of clear guidelines on the management of seized cryptocurrencies has led to "inconsistent and opaque approaches," which could encourage corruption, lawyers have told Reuters.
These governments are using private companies to sell seized cryptocurrencies on foreign markets in exchange for cash to boost public finances, according to Reuters, which cited transactional and court documents.
By the end of 2023, local governments reportedly held around 15,000 Bitcoins, valued at $1.4 billion, and these sales have become a major source of revenue.