Behind the Ban: China’s Secret Bitcoin Sell-Off Exposed

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📈 Preview On Today’s News:

1. - Behind the Ban: China’s Secret Bitcoin Sell-Off Exposed

2. - Russia Pushes Back Against USDT Ban With Homegrown Stablecoin Plan

3. - Banking Bottlenecks Propel Stablecoin Surge, Say Experts

Keep reading below for more!

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Today’s News:

1)

Behind the Ban: China’s Secret Bitcoin Sell-Off Exposed

Despite a nationwide ban on cryptocurrency trading since 2021, local Chinese governments have been quietly liquidating seized Bitcoin to ease financial strain. Reports reveal that authorities have offloaded at least $414 million in digital assets through private firms like Jiafenxiang, often operating in legal gray zones. This covert activity, driven by rising debt and budget shortfalls, has contributed to significant Bitcoin price volatility—causing a 10% market dip in late 2024. Analysts warn that these opaque sales undermine China’s policy credibility and pose risks to global market stability, especially with China holding an estimated 15,000 BTC valued at $1.4 billion.

• Chinese local governments are discreetly selling seized Bitcoin—over $414M worth—despite a national crypto trading ban, aiming to fund public services amid economic distress.

• The unregulated sales have shaken market stability, with analysts linking these liquidations to a 10% Bitcoin price drop and calling for urgent policy reforms to address the contradiction.

2)

Russia Pushes Back Against USDT Ban With Homegrown Stablecoin Plan

Russia’s Finance Ministry has proposed the development of a national crypto stablecoin in response to increasing geopolitical tensions and recent sanctions that led to the blocking of over $30 million in Russian-linked Tether (USDT) wallets. As part of a broader de-dollarization effort led by BRICS nations, the move signals a shift in Russia’s crypto strategy, aiming to reduce reliance on the US dollar and external digital assets. The Central Bank is already testing international crypto payments, indicating a deeper embrace of blockchain tools amid global economic realignment.

• Russia’s Finance Ministry is advocating for a domestically developed stablecoin after USDT wallets tied to the country were blocked amid sanctions.

• This marks a strategic pivot in Russia’s broader de-dollarization agenda, with active testing of crypto for international payments already underway.

3)

Banking Bottlenecks Propel Stablecoin Surge, Say Experts

The rise of stablecoins can be traced back to the shortcomings of the U.S. banking system, according to Jerald David, president of Arca Labs. Speaking at the TokenizeThis 2025 event, David highlighted how limited banking hours and the absence of non-USD trading pairs have driven demand for round-the-clock financial alternatives like stablecoins. He also pointed to the emergence of yield-bearing instruments, such as those used for staking or lending, as a growing segment of the digital asset market. Meanwhile, Know Your Customer (KYC) regulations sparked debate, with some arguing that requiring identity checks for simple stablecoin transactions—like buying coffee—could stifle usability. Panelists proposed a more flexible, trust-based KYC system to ease friction across platforms while maintaining compliance.

• Stablecoins gained traction due to U.S. banking limitations, such as restricted operating hours and lack of non-USD pairs, highlighting crypto's appeal as a 24/7 financial solution.

• KYC requirements for stablecoin users are under scrutiny, with experts proposing trust-based systems to streamline compliance without sacrificing convenience for everyday transactions.

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