Despite the ban, China selling seized crypto to top up coffers as economy slows

[yhiaali3]

Of course it is.
They are not trading, they are liquidating digital assets, perfectly legal in any country.
The USMS auctions firearms and cars that are illegal in California, for exampleand seized but perfectly legal if the buyer is from Texas.

But why do they do this secretly through private companies?

Yes, I agree with you that any country has the right to sell illegal confiscations and deposit them in the state treasury legally. But, this must be done in a public auction and through legal tender, not in secret.
As for the government selling confiscated goods through private companies in secret, they most likely believe this is illegal, so they keep things under wraps. This is my conclusion.

[Lucius]

But why do they do this secretly through private companies?
But, this must be done in a public auction and through legal tender, not in secret.
~snip~

Because this is about China, and in that country the government doesn't ask the people for anything, it just issues orders that people have to obey. In other words, the politicians in that country are not accountable to the people, but to themselves, which gives them the right to do whatever they want, in the way they want.

[Bobcrypto]

Can this move made by local governments in China legal? Well, I am sure it is not illegal but am sure this is hypocrisy since China already banned Bitcoin years ago and declared that the nation will not have anything to do with the said digital asset. But right now, China remains a factor in the movement of Bitcoin all because of the huge BTC they confiscated years ago. Definitely, if China will decide to sell all Bitcoin it got the market will tumble but am sure the government at the top is now also thinking strategically since they know now they can use Bitcoin as a way to avoid sanctions in international trade just like what Russia got into. So let's see where is the direction the government is taking on this aspect...will they keep or will they let go?

The government of China is bais about Bitcoin, unfortunately, this is another levels of hypocrisy especially to her citizens. It has become "a Man who said he forbid to eat cow, but uses his teeth to share the cow to those that eat cow", a big deceit.
Well, from what is going on as regards the US tarrif war, it supposed to be obvious that China can't survive the sanctions, and they will end up having a loose end on her anti crypto stand in no distance time.
I have also made a topic on China Bitcoin ban, and that, when the need arises, China will have no options than to make agreement with as many countries as possible on international trade settlements currency. As you knew, the issue of US dollar in settlement has been some agenda behind the coming together of several countries into BRICS
let watch how this politics of Bitcoin ban and the tariff war will play out even in near future.

[yhiaali3]

But why do they do this secretly through private companies?
But, this must be done in a public auction and through legal tender, not in secret.
~snip~

Because this is about China, and in that country the government doesn't ask the people for anything, it just issues orders that people have to obey. In other words, the politicians in that country are not accountable to the people, but to themselves, which gives them the right to do whatever they want, in the way they want.

Yes, you may be right. In totalitarian regimes, the president or government is above the law. It could be argued that what the president or government does becomes the law, so perhaps this is an acceptable justification.

Although it's off-topic, I wonder how China managed to become a major global power competing with America despite the presence of such a ruling Chinese party. As I know, communist regimes are totalitarian and do not believe in democracy and openness.

[Faisal2202]

A few days ago, I wrote about international payment settlements between China and Russia using Bitcoin due to the tariff war. Today, we hear that China is selling Bitcoin to support the state treasury. Has the tariff war opened new horizons for Bitcoin?

That can't be legal, they are selling people's money but Germany sold btc worth 2 billion, so if China also sells it won't be a discussion that if its legal or not.

Although I am surprised to hear that China is 2nd number from countries in holding the most BTC. 14 billion dollar worth of BTC that they accumulated excluding the seized amount is just awesome and still they have banned crypto.

Speaking of opening of new horizon for BTC, I think that has already happened.

[Findingnemo]

This is really interesting. China, which bans cryptocurrency trading, is selling confiscated cryptocurrencies to support the state treasury. Is this legal?

The government creates the laws, so anything they do is legal.

And I doubt this is true because China is accumulating more bitcoins into their reserves and the ban is for their citizens only then why do they want to sell the cryptos? Or it's that they are converting to bitcoins...

[yhiaali3]

Although I am surprised to hear that China is 2nd number from countries in holding the most BTC. 14 billion dollar worth of BTC that they accumulated excluding the seized amount is just awesome and still they have banned crypto.

You shouldn't be surprised that China ranks second among countries in terms of holding the largest number of Bitcoins. Although China bans Bitcoin, it is considered one of the countries with the largest number of cryptocurrency holders. A report stated that China ranks second in the world in terms of the number of cryptocurrency holders, approximately 59 million people.

Of course, most Chinese citizens do not comply with the ban, and the Chinese government is working to pursue them and confiscate their crypto assets. Therefore, it's no surprise that they possess such a large amount of Bitcoin and other cryptocurrencies.

[Lucius]

~snip~
Although it's off-topic, I wonder how China managed to become a major global power competing with America despite the presence of such a ruling Chinese party. As I know, communist regimes are totalitarian and do not believe in democracy and openness.

Precisely because of the way society behaves under communist rule - I had the misfortune of spending part of my life in such a society, so I have experience with such a regime. China managed to become a global superpower because it managed to practically turn 1.x billion people into robots who blindly believe everything the communist party tells them - or at least pretend to believe for fear of ending up in re-education camps or something worse.

If you think about it, a society in which there is no democracy and everyone behaves like robots (more or less) must be efficient - and especially if there are 4 times more robots than the US population.

[Faisal2202]

You shouldn't be surprised that China ranks second among countries in terms of holding the largest number of Bitcoins. Although China bans Bitcoin, it is considered one of the countries with the largest number of cryptocurrency holders. A report stated that China ranks second in the world in terms of the number of cryptocurrency holders, approximately 59 million people.

Of course, most Chinese citizens do not comply with the ban, and the Chinese government is working to pursue them and confiscate their crypto assets. Therefore, it's no surprise that they possess such a large amount of Bitcoin and other cryptocurrencies.

So they are on second number in terms of active crypto users too. Well that's surprising as well but as you said we should not be surprised so I guess they would still be mining crypto and may have most active nodes running

Speaking of confiscation amount, which is just 2 billion while the total amount they hold is around 14 billion dollars so that's not a small amount which they might have accumulated or mined.

[doc]

You shouldn't be surprised that China ranks second among countries in terms of holding the largest number of Bitcoins. Although China bans Bitcoin, it is considered one of the countries with the largest number of cryptocurrency holders. A report stated that China ranks second in the world in terms of the number of cryptocurrency holders, approximately 59 million people.

Of course, most Chinese citizens do not comply with the ban, and the Chinese government is working to pursue them and confiscate their crypto assets. Therefore, it's no surprise that they possess such a large amount of Bitcoin and other cryptocurrencies.

Although the Chinese government has banned bitcoin, in reality its citizens are the largest bitcoin owners, so the ban is useless. In my opinion, the Chinese government should legalize bitcoin and allow its citizens to own and transact with bitcoin because they can collect taxes from their citizens' transactions.

[target]

You shouldn't be surprised that China ranks second among countries in terms of holding the largest number of Bitcoins. Although China bans Bitcoin, it is considered one of the countries with the largest number of cryptocurrency holders. A report stated that China ranks second in the world in terms of the number of cryptocurrency holders, approximately 59 million people.

Of course, most Chinese citizens do not comply with the ban, and the Chinese government is working to pursue them and confiscate their crypto assets. Therefore, it's no surprise that they possess such a large amount of Bitcoin and other cryptocurrencies.

Although the Chinese government has banned bitcoin, in reality its citizens are the largest bitcoin owners, so the ban is useless. In my opinion, the Chinese government should legalize bitcoin and allow its citizens to own and transact with bitcoin because they can collect taxes from their citizens' transactions.

They allow people to hold Bitcoin as their policy says Bitcoin is a property. Its not totally ban as what I have read on some news. If the government backs a company that mines Bitcoin, its their way of saying they are authorized the company.

Remember that Hong Kong allows trading of Bitcoin. Although its part of China, Hong Kong works differently from the mainland which anyone or any institutions registered under Hong Kong are able to own Bitcoin.

[yhiaali3]

Precisely because of the way society behaves under communist rule - I had the misfortune of spending part of my life in such a society, so I have experience with such a regime. China managed to become a global superpower because it managed to practically turn 1.x billion people into robots who blindly believe everything the communist party tells them - or at least pretend to believe for fear of ending up in re-education camps or something worse.

I'm sorry you had to go through such an experience; it must have been terrifying. I've seen some movies about communist societies, but experiencing them in real life is definitely different.

I don't know how the Chinese people have adapted to this difficult reality, but if, as you say, they've almost become robots, then it means they've also been programmed to be uncomplaining, content, and perhaps even happy with their reality.

[Wiwo]

Just like proceeds of other financial crimes, selling seized cryptos by the state is legal to some extent and we shouldn't avoid the obvious truth that every untraceable asset belongs to the government, since the seized crypto are valuable assets, that make it economically usable and supportive.

[Lucius]

Although the Chinese government has banned bitcoin, in reality its citizens are the largest bitcoin owners, so the ban is useless. In my opinion, the Chinese government should legalize bitcoin and allow its citizens to own and transact with bitcoin because they can collect taxes from their citizens' transactions.

Who or what is the source of this claim? As far as I know, the most BTC is held by US citizens and their companies, while on the other hand, we cannot know how much the Chinese have (or don't have), because there is no method today (nor was there before) to determine such a thing. Besides, it always seemed to me that most Chinese people sold their BTC after the ban, because most of them blindly obey orders from the top.

I'm sorry you had to go through such an experience; it must have been terrifying. I've seen some movies about communist societies, but experiencing them in real life is definitely different.
~snip~

Fortunately, I did not live in such a society for too long, but the consequences of their rule are felt even today because they committed terrible crimes that remained unpunished. That's why it's always strange to me that people are so fascinated by a country that is still ruled by people who do not shy away from even the worst things in order to stay in power.

However, it would be unfair to say that they are the only ones who commit crimes against people who oppose them, some countries that call themselves great democracies also do things that are inhumane and unjust. All of these countries have one thing in common, and that is that they dislike BTC to the point of banning it completely, to the point of only seemingly approving it while on the other hand doing everything they can to dissuade people from having anything to do with it.

[Azharul]

You shouldn't be surprised that China ranks second among countries in terms of holding the largest number of Bitcoins. Although China bans Bitcoin, it is considered one of the countries with the largest number of cryptocurrency holders. A report stated that China ranks second in the world in terms of the number of cryptocurrency holders, approximately 59 million people.

Of course, most Chinese citizens do not comply with the ban, and the Chinese government is working to pursue them and confiscate their crypto assets. Therefore, it's no surprise that they possess such a large amount of Bitcoin and other cryptocurrencies.

So they are on second number in terms of active crypto users too. Well that's surprising as well but as you said we should not be surprised so I guess they would still be mining crypto and may have most active nodes running

Speaking of confiscation amount, which is just 2 billion while the total amount they hold is around 14 billion dollars so that's not a small amount which they might have accumulated or mined.

China is also the second number of largest bitcoin users in cryptocurrency world. So i believe that if in this situation china people’s ban bitcoin,  i believe that it must be a large threat for cryptocurrency world.  We obviously know that china government ban bitcoin and selling seized crypto, i think that it must be bad effect for there country. I think that trump donald Trump's tariffs is also very responsible for this situation. But i believe that within a shot time china government solve this problem.