Local governments in China are back in the spotlight.
Not because of infrastructure development or social issues, but because of news that they have sold around 15,000 Bitcoin (BTC) through a private company abroad. If calculated, the value is around $1.25 billion. Not a small number for assets confiscated from illegal activities.
China’s Secret Sales Through Private Companies
Interestingly, this transaction was carried out secretly through a private entity, because in China itself, crypto trading activities have been banned since 2021. Just imagine if the confiscated money was put into the education budget or public services, many changes could occur.
JUST IN: China’s local governments sell 15,000 Bitcoin worth $1.25 billion via offshore private entities: Reuters.
— Whale Insider (@WhaleInsider) April 16, 2025
But the problem is that there are no clear national regulations on how these confiscated digital assets should be handled. As a result, each local government acts on its own.
One company called Jiafenxiang, based in Shenzhen, is said to have helped sell billions of yuan worth of crypto from various city authorities. But because there is no national legal framework governing this practice, concerns have arisen about the potential for abuse and even corruption.
Growing Calls for Centralized Management of Seized BTC
On the other hand, CNF previously reported that China had released 194,000 BTC from the PlusToken case—a massive Ponzi scheme that trapped more than two million people. Bitcoin from this case was also sold. So it is not the first time that the bamboo country has released large amounts of BTC ownership.
Furthermore, several officials in China have begun to suggest that confiscated digital assets be managed directly by the central bank or made into national reserves. Logically, rather than being managed haphazardly at the regional level, it is better to consolidate them so that their direction and goals are clear.
Interestingly, China is also starting to show interest in crypto again. Last April, a VanEck report revealed that China and Russia had started using Bitcoin for energy trading transactions. This is clearly an effort to move away from the dominance of the US dollar.
And don’t forget, crypto activity in regions like Hong Kong is still ongoing. In fact, Bitcoin and Ethereum ETFs have been approved there. The direction of China’s policies is indeed unpredictable, but it is clear that crypto still has a place, at least through alternative channels.
CNF also previously highlighted Deutsche Bank, which has predicted that China’s technological dominance will grow stronger in 2025, especially through AI.
So, it is not surprising that digital assets such as Bitcoin are also being played behind the scenes, whether for economic reasons, technology, or simply a strategy to deal with geopolitical pressure.