China has announced plans for the first time to sell seized digital assets through licensed exchanges in Hong Kong, in partnership with the Beijing Stock Exchange (#CBEX ). The assets will be converted into yuan and deposited into a state-designated account.
This is a significant milestone, because despite the mainland banning cryptocurrency trading, China remains the world’s third-largest holder of digital assets – with seizures expected to exceed $60 billion by 2023.
Using Hong Kong as a “legal gateway” demonstrates a two-pronged strategy: strict control at home, but flexibility in the special administrative region. This allows Beijing to leverage blockchain’s potential while retaining legal control.
Hong Kong is increasingly asserting its position as a digital asset hub, becoming a bridge between China and the global cryptocurrency ecosystem.
Although this move helps legalize the seized assets, it also poses great risks to the market. If the coins are sold en masse, it can cause a large supply pressure, causing prices to plummet. In addition, just the news of the sale can create a negative psychological effect, causing investors to panic and sell. However, choosing licensed exchanges and selling in small batches can minimize the impact. Although China bans cryptocurrencies on the mainland, it is taking advantage of Hong Kong as a digital asset center to play a strategic role in the global market.
📌 This article is for informational purposes only and is not investment advice.