The confiscated crypto sale plan from Chinese authorities is moving forward. The Beijing Municipal Public Security Bureau will use Hong Kong’s licensed crypto exchanges to sell digital assets seized during criminal cases. This marks a big change in how China handles confiscated cryptocurrency.
To manage the process, Beijing partnered with the China Beijing Equity Exchange (CBEX). CBEX will work with third-party agencies that follow anti-money laundering (AML) rules. These agencies will sell the crypto and convert the earnings into yuan.
Why Hong Kong Will Handle the Confiscated Crypto Sale
Mainland China bans crypto trading, so managing seized tokens is legally complex. Hong Kong, however, offers regulated platforms that meet global standards. That’s why Beijing chose to move its confiscated crypto sale operations offshore.
Each sale must follow strict rules. Agencies handling the sale need to place a 110% deposit based on the asset value. Transactions must be completed and reported within 24 hours.
This is the first time China has officially described how it plans to liquidate confiscated crypto on such a scale.
CBEX and Hong Kong Exchanges Bring Structure and Control
The use of CBEX ensures oversight. Their role includes selecting qualified partners and ensuring compliance. By using licensed exchanges in Hong Kong, China avoids legal risk while ensuring transparency.
There are currently 10 licensed crypto exchanges in Hong Kong. Although Beijing did not name specific platforms, any involved exchange must meet AML and regulatory standards.
Previous Confiscated Crypto Sales Were Secretive
In 2019, Chinese authorities reportedly sold 194,000 BTC linked to the PlusToken scam. According to analyst Ki Young Ju, the funds were moved through crypto mixers before landing on local exchanges.
This time, Beijing aims for a public and documented process. It wants to prevent rumors and show control over asset recovery.
Conclusion: Confiscated Crypto Sale Signals a New Era
The confiscated crypto sale process designed by Beijing and CBEX sets a model for future actions. It balances the need for legal oversight with practical tools for liquidation. Using Hong Kong’s regulated crypto sector shows how China is learning to manage digital assets within a strict legal framework.
If this model succeeds, other countries may follow.
