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Beijing police announced a mechanism to manage seized cryptocurrencies.
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BTC sales revenues will become yuan and deposit in designated accounts.
The Beijing Municipal Public Security Office, in China, officially announced its intention to liquidate its holdings in Bitcoin (BTC) and other cryptocurrencies, as part of a process to standardize the management of cryptoactive ones seized through the so -called «Beijing model.»
As news and local media agencies disseminate, the information was announced through a statement published in the official Wechat account of the security agency.
The letter indicates that the authorities have been looking for legal mechanisms that allow them SELL CRYPTIVES SEEN. An action that is complicated due to the prohibitions that exist since 2021 to make cryptocurrency transactions.
To solve the problem, this June 6 an agreement was signed with the Beijing Stock Exchange (CBEX), which will be the entity responsible for managing the seized cryptocurrencies. In this way, the bag will be responsible for appointing external agencies to liquidate cryptocurrencies through regulated exchanges that operate in Hong Kong.
«The income from these sales will be converted to Yuan For cryptocurrency liquidation in the hands of the State.
It is a mechanism that seeks to address the growing number of criminal cases related to Bitcoin that are being presented in China, and that are leaving the authorities an important balance in cryptocurrencies, police reported.
The statement does not clarify what is the amount of holdings in BTC that the agency plans to sell, or all confiscated cryptocurrencies that the government manages. Nor does it indicate whether the procedure will only apply for cryptocurrencies that are obtained in future seizures.
He adds that, following the provisions of the laws, no authority in the country must administer or maintain these seizures in their coffers, so it was necessary to clarify the mechanisms that can be used for liquidation.
Although it is not explicitly mentioned, this statement seems to agree with information that has been circulating since January of this year, noting that China has been selling its holdings in Bitcoin.
It is an amount that It is estimated in 194,000 BTCaccording to the calculations of Buy Bitcoin Worldwide and that according to the CEO of the firm Cryptoquant, Ki Young Ju, they have been mobilizing since 2019. «To the point that everything has already been sold.»
As cryptootics has reviewed, unofficial information about the sale of Bitcoin seized in China became stronger last April. At that time it was learned that the governments of the provinces are liquidating cryptoactives Product of seizures, turning them into millions of yuan.
The mechanism used is almost the same steps of the «Beijing model» presented by the Municipal Public Security Office, as governments of cities such as Xuzhou and Taizhou delegate to private companies the sale of these assets in international exchanges.
However, Beijing’s proposal gives precise instructions that are considered «more favorable for the nation.» This, by involving so much A specialized stock exchange in provide services to companies in the country, such as Hong Kong companiesan administrative region linked to China that is emerging as a hub Cryptocurrency World.