China’s top police body has set up its first official way to sell off crypto coins it grabs in criminal cases. The move leans on Hong Kong’s licensed trading platforms. It lets Beijing turn seized Bitcoin and Ethereum into yuan without loosening its own ban on crypto at home.
Law enforcement in China now holds about 194,000 Bitcoin and 833,000 Ethereum from past busts. Those numbers add up fast. Storing so many coins carries security and paperwork headaches. Reports disclose that selling them off in one go can also shake markets. By using regulated venues, authorities get clear records and cut down risks tied to long-term custody.
Officials say the plan wipes seized coins from circulation, rather than letting fresh trading spring up. They argue it fits existing anti-crypto rules. However, some market watchers say the flow of hundreds of thousands of coins could still ripple through the wider market, even on licensed exchanges.
This move also shines a light on Hong Kong’s growing role in the crypto world. The city has issued more than a dozen licenses to exchanges since rolling out its digital asset rules. Now it will be the go-to place not just for investors, but for law enforcement looking to convert big blocks of Bitcoin and Ether into cash.
Featured image from Hong Kong Tourism Board, chart from TradingView
