China’s state-held Bitcoin reserves are now approaching those of the United States, according to updated government data, revealing a major contrast between the country’s digital asset policy and its holdings. Authorities continue to enforce a ban on public crypto activity.
China has increased its Bitcoin reserves through high-volume asset seizures conducted by law enforcement during anti-fraud investigations and crackdowns. These coins were confiscated during operations against illegal platforms and pyramid schemes that used crypto to move funds.
UPDATE: China is on the verge of flipping the U.S. as the top Bitcoin holder, despite maintaining a nationwide crypto ban. pic.twitter.com/ND6ZJacD0P
— Coin Bureau (@coinbureau) January 27, 2026
Authorities later consolidated these Bitcoin holdings under state control rather than selling them in the open market. This practice contrasts with policies in several other countries, where seized digital assets are regularly auctioned or sold off.
A key example occurred in 2020 when China seized 194,775 Bitcoin from the PlusToken scheme. At the time, the value exceeded $4 billion, and the assets were transferred to state control, where many remain.
China has not publicly disclosed plans to liquidate these holdings, allowing its reserves to remain largely intact. While domestic crypto activity faces legal restrictions, the state appears to treat seized Bitcoin as a financial asset.
The United States also holds Bitcoin acquired from law enforcement actions, but with a different policy approach. Federal agencies like the FBI and IRS conduct asset seizures under court orders and transfer ownership to the government.
Unlike China, U.S. authorities regularly auction off seized Bitcoin through the U.S. Marshals Service. These sales return proceeds to the U.S. Treasury, reducing the amount of Bitcoin retained by the state.
For instance, in March 2023, the U.S. sold 9,861 Bitcoins tied to the Silk Road marketplace. In total, over 195,000 Bitcoins have been sold by U.S. agencies since 2014, based on public auction records.
Because of this, the U.S. Bitcoin reserves fluctuate, with current holdings estimated at around 207,000 coins. Meanwhile, China’s undeclared but growing total is believed to be approaching this level due to a lack of sell-offs.
Despite China’s ban on crypto trading and mining, the government continues to control one of the world’s largest Bitcoin reserves. This policy separation reflects the dual stance of cracking down on public use while keeping digital assets acquired from crime.
The People’s Bank of China has promoted its central bank digital currency but has not addressed Bitcoin reserves publicly. Official statements focus on enforcement rather than state ownership of digital assets.
Experts point out that China has never committed to selling its seized Bitcoin.
“These holdings represent a financial tool, not a regulatory contradiction,” said a source familiar with law enforcement processes.
As of January 2026, China has not reported any major Bitcoin sales through state channels. This increases speculation that the holdings will remain untouched unless policy changes occur.
China’s Bitcoin reserves are currently valued at over $9 billion based on market rates. This positions the country near the top of global rankings for state-owned digital assets.
The continued growth of these holdings highlights a difference between declared policy and asset management. Yet officials have remained silent on whether these coins will be used, held, or liquidated.
U.S. data, by contrast, is available through federal reports and auction disclosures. These records offer transparency into government crypto activity, unlike China’s unpublished reserve figures.
On January 15, 2026, China’s Cyberspace Administration confirmed another seizure of over 3,000 Bitcoin from an online fraud network. These coins were added to existing reserves, pushing the estimated total even higher.
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