China is planning a major sell-off of Bitcoin assets to support its financially stressed local governments, according to a report by Cointelegraph. The government is preparing to sell around 15,000 Bitcoins, currently valued at approximately $1.2 billion, which were seized during major criminal investigations in recent years.
The sale is expected to be conducted on international markets through private companies. However, authorities have yet to finalize regulatory guidelines for this process. All transactions will require court approval, and officials have stressed the need to follow legal procedures closely before the assets are liquidated.
This move comes amid growing financial pressure on local administrations across China, many of which are facing widening budget deficits. While the sale is being positioned as a step to ease these fiscal gaps, it could also cause notable volatility in the global cryptocurrency market. Investors and analysts are watching closely for any signs of sudden price swings as the sell-off unfolds.
Despite the scale of the planned liquidation, the government has yet to provide full clarity on how the proceeds will be distributed or how the market impact will be managed.
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