China has its sights on a mass sale of a cache of Bitcoins confiscated from illicit activities, threatening to sink prices in the short term. Chinese authorities are sitting on 15,000 Bitcoin, sparking debates over the handling of seized cryptocurrencies.
China Mulls Over Bitcoin Sale On Foreign Exchanges
Local governments in China are reportedly keen on selling off their Bitcoin holdings to fund operations amid a nationwide cash crunch. According to a Reuters report, the authorities are looking to dispose of 15,000 Bitcoin valued at around $1.2 billion.
Municipal governments in China have been racking up Bitcoin from high-profile seizures since the blanket ban on cryptocurrencies in 2021. Since the ban, an absence of clear rules on the handling of seized crypto assets is creating a staccato approach in Mainland China.
Now, local governments, eager to fund their depleting public coffers, are seeking court approvals to dispose of their BTC holdings. Per the court documents, local authorities will tap private companies to offload up to 15,000 BTC on offshore exchanges.
The move has drawn criticism from Chen Shi, a professor at the Zhongnan University of Economics and Law, over its legality. For Shi, using private companies to sell Bitcoins offshore is inconsistent with the existing ban on cryptocurrency trading. Shi and other legal experts are pining for a Bitcoin Reserve, urging authorities to mirror the US playbook.
“A more centralized management would help China maximize the value of the seized cryptocurrencies,” said Winston Ma, a professor at NYU Law School.
The planned sale follows a drawn-out US-China trade war that threatens to send cryptocurrency markets under water.
Offloading 15,000 BTC Will Increase Sell Pressure
China’s plan to sell up to 15,000 BTC will adversely affect prices for the largest cryptocurrencies. With the chances of BTC flooding exchanges rising, investors are bracing for a retracement for the asset.
Bitcoin price is walking a tight rope at the moment, trading at $83K after sliding by nearly 2%. Fears of a flash sale by China and other macroeconomic woes will see Bitcoin retest $80K again. Futhermore, Trump has slammed a 245% tariff on China, triggering a broad decline for Bitcoin and other cryptocurrencies.
However, if Chinese courts block the sale and authorities announce a Bitcoin Reserve, a short term price spurt is within grasp. MicroStrategy’s BTC purchase is stoking enthusiam for a Bitcoin price climb to $90K but
The post China Plans To Sell 15,000 Bitcoin On Offshore Exchanges appeared first on CoinGape.