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- 🎉 Hey Gate Square friends! Non-stop perks and endless excitement—our hottest posting reward events are ongoing now! The more you post, the more you win. Don’t miss your exclusive goodies! 🚀
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China implements a cryptocurrency storage protocol amid a trading ban.
The security forces of Guizhou Province ( China ) have recently started using a common custody model and cold wallets to handle cryptocurrencies seized from illegal activities, particularly in the city of Duyun.
This approach reflects China's strategic shift in managing digital assets amid the backdrop of a cryptocurrency trading ban, which could impact the liquidity and legal framework of the market.
Since the trading ban in 2021, the Đô Doanh police agency has developed a process for managing seized cryptocurrencies. The implementation of cold wallets and a centralized custody system marks a significant step in law enforcement activities.
However, the storage and handling of digital assets face many challenges, forcing China to adjust its approach. Lawyers warn that the direct sale of these assets conflicts with the trading ban, while also expressing concerns about legal compliance and the risk of disrupting the market.