Local Chinese governments are reportedly contemplating how to get rid of their burgeoning stashes of seized crypto assets.

According to a new report by Reuters, local governments in China are debating how to efficiently dispose of digital assets seized from illegal transactions.

Lawyers familiar with the matter told Reuters that the lack of rules around what authorities should do with seized crypto assets has created uncertainty. However, lawyers, judges, and police are coming up with ways to treat seized cryptocurrencies.

Reuters says it viewed transaction documents showing that local authorities are using third-party companies to sell the seized digital assets for cash to “replenish public coffers.”

However, Chen Shi, a professor at the Zhongnan University of Economics and Law, says that the government’s current method is “a makeshift solution that, strictly speaking, is not fully in line with China’s current ban on crypto trading.”

Guo Zhihao, a senior partner at Beijing Yingke Law Firm who attended a seminar to discuss this topic in January, told Reuters that authorities selling the digital assets directly conflicts with the nation’s ban on trading crypto assets.

According to Guo, China’s central bank is better equipped to handle digital assets as it could sell them overseas and/or establish a strategic reserve with them.

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