China’s Strategy to Cripple the Dollar: Wise Investments Are Focusing on Hong Kong
The recent crypto prohibition from China has introduced yet another appealing aspect to the Asian markets. China is orchestrating a price drop for the opportunity to make purchases.
At 99B, our hypothesis suggests that China enforces a ban on 
BTC ▼-0.28% when prices soar and lifts the ban when the BTC price is down low, ensuring that their citizens and enterprises avoid buying at inflated prices. It’s a forced diamond hands strategy.
Additionally, this week Beijing announced its intention to begin releasing its stockpile of confiscated crypto through authorized exchanges in Hong Kong.
By introducing seized assets into licensed platforms, China is boosting liquidity, enhancing trading volume, and transforming Hong Kong into a pricing engine for worldwide crypto markets. Here’s what you should be aware of:
The China Crypto Ban is Deceptive and Will Propel Hong Kong as the Leading Bitcoin Hub
Hong Kong’s digital assets regulations are built on several critical legal frameworks:
- The 2022 Anti‑Money Laundering & Counter‑Terrorist Financing Ordinance (AMLO) requires all virtual asset trading platforms to be licensed.
- Stablecoin Ordinance, effective August 1, 2025, enforces strict reserve standards, redemption processes, and mandates issuance by Hong Kong-based entities.
- LEAP 2.0, launched in June 2025, provides a unified licensing strategy for crypto products and encourages cross-industry cooperation.
Nonetheless, mere licensing does not equate to influence—liquidity is the true driver. By channeling state-seized crypto through Hong Kong, we anticipate an influx of market fluidity turning the city into a pressure valve, allowing China to control global crypto markets.
(Source)
Real-time statistics from CoinGlass and DeFiLlama demonstrate the ramifications of open interest on crypto pairs listed in Hong Kong, which have experienced a 35% increase recently.
Moreover, stablecoin TVL on-chain data from issuers aiming for Hong Kong stablecoin licenses has already shown a 28% rise over the previous month, indicating that institutional investment is gearing up for the upcoming regulations.
(Source)
DISCOVER: Top New Cryptocurrencies to Invest in 2025
Strategic Consequences: Hong Kong Rises, U.S. Remains Passive
By deliberately synchronizing regulations and available volume, China seeks to establish Hong Kong as a digital asset super-center—a significant geopolitical and financial influence. In contrast, the U.S. adopts a passive “hold-only” Bitcoin reserve, while Hong Kong can utilize and deploy crypto to sway price discovery and market narratives.
This transformation prompts essential inquiries:
- Will authorities in the U.S. react by developing strategies to regain control over crypto market fluidity?
- Can global regulation systems adapt to jurisdictions leveraging market fluidity as a strategic resource instead of just a regulatory obligation?
For crypto investors, regulation experts, and decision-makers, the conclusion is unmistakably clear: Hong Kong now possesses the lever.
For years, the crypto movement has been restrained by older generations unwilling to acknowledge the inevitable changes. These same individuals, engaged in unwinnable conflicts, are stifling the crypto revolution because they believe they can retain control by censoring the Internet.
China is awakening to that reality, and no one can hinder their progress.
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Key Insights
- The recent crypto prohibition from China has introduced yet another appealing aspect to the Asian markets. China is orchestrating a dump for the opportunity to make purchases.
- By deliberately synchronizing regulations and liquidity, China aims to establish Hong Kong into a digital asset super-hub.
The post China’s Strategy to Undermine the Dollar: Smart Money Looks to Hong Kong appeared first on 99Bitcoins.
