China’s top police agencies have established the first official way to sell cryptocurrencies they have caught in criminal cases. This move relies on Hong Kong’s licensed trading platform. It has enabled Beijing to convert Bitcoin and Ethereum into dollar without relaxing its own ban on cryptocurrencies at home.
Cryptocurrency exports in Hong Kong
According to a report by Asia Technology, China’s Public Safety Bureau has partnered with China’s Beijing Equity Exchange to address these sales. Regulated exchanges in Hong Kong will process transactions. A third-party agency will execute the transaction and then hand over the RMB to a government account. This is a neat question for a past that leaves the seizure funds in a digital wallet without a clear exit plan.
Strict ban on mainland China
China still bans almost all cryptocurrency trading and mining on the mainland. New sales plans won’t change that. It simply takes advantage of Hong Kong’s regulations that allow licensed companies to serve large investors and qualified retail customers. In this way, Beijing can maintain its hardline stance while quietly moving the big coin piles.
Handle the hiding place for big coins
China’s law enforcement now has about 194,000 bitcoins and 833,000 Ethereum, from past busts. These numbers are fast. Storing so many coins brings security and paperwork headaches. Selling them in one go could also shock the market, the report revealed. By using regulated venues, authorities have obtained clear records and have reduced risks associated with long-term custody.
Total crypto market currently valued at $3.28 trillion on the daily chart: TradingView.com
Global context of epilepsy seizures
Other countries are facing the same dilemma. The U.S. government is located in DarkNet and the crime investigations about 200,000 bitcoins. According to the report, the UK has caught about 61,000 bitcoins in fraud cases. China’s new framework can provide templates for anyone who bans or restricts cryptocurrencies but still needs to cash out coins.
China’s setting emphasizes how “one country, two systems” play a role in finance. Mainland rules remain strict. But Hong Kong has become the path with its own laws. This split has allowed Beijing to evade domestic struggles to lift the ban, but still exploit the global market where it suits them.
Officials say the plan grabbed coins from circulation, rather than letting new deals rise. They believe this is in line with existing anti-Lextor rules. But, some market observers say that even on licensed exchanges, the flow of hundreds of thousands of coins may still ripple in the wider market.
This move also illustrates Hong Kong’s increasingly role in the cryptocurrency world. The city has issued more than a dozen licenses since its introduction of its digital asset rules. Now, this is not only an option for investors, but also for law enforcement agencies that want to convert large chunks of Bitcoin and Ether into cash.
Featured images of the Hong Kong Tourism Board, charts of TradingView
Editing process For Bitcoin experts, focus on thorough research, accurate and impartial content. We adhere to strict procurement standards and each page is diligently evaluated by our top technical experts and experienced editorial team. This process ensures the integrity, relevance and value of our content to our readers.
