Beijing police have announced a plan to sell cryptocurrencies seized in criminal cases through licensed exchanges in Hong Kong. The move could support Hong Kong’s efforts to develop as a virtual asset hub, according to Hong Kong’s South China Morning Post newspaper.
The Beijing Municipal Public Security Bureau has partnered with the China Beijing Equity Exchange (CBEX) to handle the disposal of these seized crypto assets using regulated platforms in Hong Kong, the Post reports. CBEX will appoint third-party agencies to sell the assets on these exchanges and the money made will be converted into yuan.
This is the first time a mainland Chinese agency has outlined a procedure for disposing of confiscated cryptocurrencies via Hong Kong’s virtual asset system.
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National authorities have dealt with many criminal cases involving digital currencies – and the value of cryptocurrencies awaiting disposal by Chinese authorities is likely worth several billion US dollars – but mainland China has strict rules against crypto trading, making it difficult to handle crypto assets seized by law enforcement.
The new process will ensure the cryptocurrencies are sold through Hong Kong platforms that have strong anti-money-laundering checks. Agencies chosen by CBEX must also provide a deposit worth 110 per cent of the value of the assets to be sold, the Post says, with all transactions to be fully documented and done within 24 hours.
Beijing police did not say which exchanges could be used, but Hong Kong currently has 10 licensed exchanges.
This article was drafted by AI before being reviewed by an editor.
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