A recent Reuters report reveals that China holds 15,000 bitcoin ( BTC) confiscated through criminal investigations. However, officials are currently entangled in deliberations over how to handle these digital assets, as cryptocurrency trading remains prohibited in the country.
Seized but Not Settled: Report Claims China Holds 15,000 BTC Amid Ongoing Policy Uncertainty
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Local Governments in China Sit on Bitcoin Fortune, Face Legal and Strategic Gridlock
Reuters reports that municipal authorities across China are weighing policy adjustments to simplify the process of liquidating confiscated crypto assets. According to the publication, a wave of criminal investigations has resulted in the seizure of digital currencies, which, in turn, have been quietly funneled into local fiscal initiatives by various provincial governments.
The article includes conversations with attorneys who allegedly advise regional governments on cryptocurrency-related matters. Reuters claims to have reviewed internal documents outlining how third-party private firms are being enlisted to offload the seized assets on behalf of local administrations. Multiple inquiries were sent to local governments, including Xuzhou, Hua’an, and Taizhou, but none of the officials responded to the questions posed.
Further into the report, it’s noted that local authorities are collectively in possession of around 15,000 bitcoin—an amount valued at approximately $1.26 billion based on prevailing BTC exchange rates. A former managing director of China Investment Corp (CIC), Winston Ma, told the outlet that a centralized framework—or potentially the use of Hong Kong’s financial infrastructure—might offer a viable path forward for managing these holdings.
“A more centralised management would help China maximize the value of the seized cryptocurrencies,” Ma told Reuters.
The report contradicts claims that China is pursuing a strategic bitcoin reserve akin to measures proposed by U.S. President Donald Trump. Earlier this year, David Bailey, CEO of Bitcoin Magazine, suggested on X that China was “holding closed door meetings” to explore the creation of such a reserve. However, given the country’s past liquidation of approximately 200,000 BTC linked to the Plustoken scheme and the findings in Reuters’ latest reporting, it appears that Chinese authorities have little interest in retaining these assets over the long haul.
