China’s Beijing Municipal Affairs Bureau has officially announced its intention to settle the holdings of Bitcoin (BTC) and other cryptocurrencies.
Due to the spread of news and local media agencies, the information was released through a statement posted on the security agency’s official WeChat account.
The letter shows that the authorities are looking for a legal mechanism to allow them A comfortable sale to see. This takes into account the ban that exists in China for trading with cryptocurrencies since 2021.
To resolve the issue, a contract was signed with the Beijing Stock Exchange (CBEX) on June 6th this year. This will be the entity responsible for managing the seized cryptocurrency. In this way, the bag is responsible for appointing external institutions to settle cryptocurrency through a regulated exchange It works in Hong Kong.
“The revenue from these sales will be converted to original For liquidation of cryptocurrency by the state.
This is a mechanism to address the rise in Bitcoin-related criminal cases presented in China, leaving authorities with a key balance of cryptocurrency holdings, police reported.
In that sense, the statement does not clarify the amount of BTC held by agents that they plan to sell. All confiscated cryptocurrencies processed domestically. It also does not indicate whether the procedure will only apply to cryptocurrencies that will be obtained in future seizures.
He added that it is necessary to be clarified as domestic powers must manage or maintain these seizures in their sources, in accordance with the provisions of the law. Mechanisms that can be used for liquidation.
Although not explicitly stated, the statement appears to have agreed to information that has been in circulation since January this year, noting that China is selling its Bitcoin holdings.
That’s the amount Estimated at 194,000 BTCaccording to calculations from Buy Bitcoin around the world, according to Ki Young Ju, CEO of Cryptoquant, they have been mobilized since 2019.
Reviewed by Cryptootics has made it stronger informal information about the sale of Bitcoin seized in April last year. At the time, it was discovered that the state government was liquidating cryptographic works. The product of the seizure, Turn them into millions of yuan.
The mechanism used follows several steps in the “Beijing model” as it is known that governments in cities such as Xuzhou and Taizhou delegate private companies the sale of these assets in international exchanges to private companies.
However, the commitment of the Beijing Public Safety Bureau raises procedures that are deemed “more legal and ideal.” By involving exchanges and exchanges in Hong Kongadministrative regions linked to China are emerging. Hub The world of cryptocurrency.