China weighs options for managing seized criminal crypto cache

China’s handling of billions in seized crypto highlights a deep policy contradiction. Despite a national trading ban, local governments are cashing in—partnering with private firms to sell digital assets and offset economic pressures. It’s a gray zone: technically illegal, but practically lucrative. With crypto-related crime surging and prosecutions overwhelming courts, this patchwork approach risks turning local budgets into crypto-dependent lifelines. In my view, centralized oversight is long overdue. A national reserve or sovereign fund, perhaps modeled on Hong Kong’s more regulated system, would ensure transparency, control, and better long-term strategy. Right now, it feels like China is profiting off a problem it refuses to formally acknowledge. Show Less