China shifts to cold storage for seized crypto
Guizhou authorities now store seized cryptocurrencies in cold wallets and joint custody centres amid China’s trading ban.
Authorities in China’s Guizhou Province have begun using joint custody centres and cold wallets to manage cryptocurrencies seized from unlawful activities, particularly in Duyun City. The move represents a strategic adjustment amid the country’s ongoing ban on crypto trading.
Adopting cold storage and joint custody addresses practical challenges in preserving and disposing of seized assets. Experts warn that selling seized crypto could breach trading bans, cause risk compliance issues, and cause market disruption.
China’s approach may influence international handling and regulation of digital assets. Analysts suggest these protocols could integrate regulatory compliance with financial stability goals, shaping broader policies for Bitcoin and other cryptocurrencies worldwide.
Scholars describe the current measures as temporary solutions that do not fully align with the nation’s crypto prohibition.
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