The Beijing Municipal Public Security Bureau in China has officially announced its intention to liquidate its holdings of Bitcoin (BTC) and other cryptocurrencies as part of a process to standardize the management of seized crypto assets through the so-called “Beijing Model.”
As reported by local news agencies and media, the information was released through a statement posted on the security agency's official WeChat account.
The document notes that authorities have been seeking legal mechanisms to allow them to sell seized crypto assets. This action is complicated by the bans on cryptocurrency transactions that have been in place since 2021.
To address the issue, an agreement was signed on June 6 with the Beijing Stock Exchange (CBEX), which will be responsible for managing the seized cryptocurrencies. This means the exchange will be responsible for designating external agencies to liquidate the cryptocurrencies through regulated exchanges operating in Hong Kong.
“The proceeds from these sales will be converted into yuan and then deposited into designated accounts,” the Public Security Bureau explains, marking the first time a Chinese authority has outlined the procedure for liquidating state-held cryptocurrencies.
This is a mechanism intended to address the growing number of bitcoin- related criminal cases being filed in China, which are leaving authorities with a significant cryptocurrency balance, according to police reports.
The statement does not clarify the amount of BTC holdings the agency plans to sell, or the total amount of confiscated cryptocurrencies the government is handling. It also does not indicate whether the procedure will only apply to cryptocurrencies obtained in future seizures.
He added that, in accordance with the law, no authority in the country should manage or hold these seizures in its coffers, so it was necessary to clarify the mechanisms that can be used for their liquidation.
Although not explicitly mentioned, this statement appears to be consistent with reports circulating since January of this year, indicating that China has been selling its Bitcoin holdings.
This is an amount estimated at 194,000 BTC, according to calculations by Buy Bitcoin Worldwide and which, according to the CEO of the firm CryptoQuant, Ki Young Ju, has been mobilized since 2019. “To the point that everything has already been sold.”
According to on-chain data managed by CryptoQuant, the Chinese government has sold all of its bitcoin. Source: X
Unofficial reports about the sale of seized bitcoin in China grew stronger last April. At that time, it became known that provincial governments were liquidating confiscated crypto assets, converting them into millions of yuan.
The mechanism used follows almost the same steps as the “Beijing Model” presented by the Municipal Public Security Bureau, as governments in cities such as Xuzhou and Taizhou delegate the sale of these assets on international exchanges to private companies.
However, Beijing's proposal lays out specific instructions that are considered “more favorable to the nation,” by involving both a stock exchange specializing in providing services to domestic companies and companies from Hong Kong, an administrative region linked to China that is emerging as a global cryptocurrency hub.
