Hugh Harsono
China’s increasing growth of its strategic digital asset reserves via law enforcement seizures is enabling it to yield more direct influence over the global digital asset ecosystem beyond just mining and holding cryptocurrencies. Despite an existing ban on cryptocurrency activities, China maintains its status as the world’s largest crypto miner, while in parallel, Chinese citizens comprise a significant portion of global crypto users.
In many cases, these seized digital assets originate from illicit activities, whether this be from criminal networks or from unlicensed financial platforms. While the concept of keeping seized assets to build a country’s own reserve is not unprecedented, the continued custody of digital assets to establish a sovereign digital asset treasury is a relatively new notion, with countries like the U.S. typically preferring to sell off seized cryptocurrencies. Therefore, countries like Kazakhstan and the United States are newer in their crypto stockpile efforts, in contrast to China’s relatively quieter and earlier accumulation of assets. With this in mind, China has a clear head start in growing its influence in shaping the global digital asset economy.
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