China's de-dollarization strategy exposed: smart money is flowing into the Hong Kong crypto market

As China promotes its de-dollarization strategy, the Crypto Assets market is quietly undergoing dramatic changes. On one hand, Beijing continues to maintain strict bans on Crypto Assets, while on the other hand, it cleverly uses Hong Kong as a new engine for global digital asset Liquidity. Smart capital is accelerating its flow into Hong Kong, which is gradually rising as the pricing center of global crypto finance. This article will analyze how China leverages Hong Kong to reshape the global Crypto Assets landscape.

Strategic Layout Behind China's Ban: Buy High, Sell Low, Control the Market

China's attitude towards Crypto Assets has always been contradictory. According to the theories in the crypto circle, China chose to announce a ban when the Bitcoin price was at a high point, suppressing market sentiment, and then gradually relaxed the ban after the price fell, allowing domestic capital to enter at a low price. This "forced diamond hands" strategy not only prevents domestic investors from buying at high positions but also creates low-buying opportunities for state institutions.

Hong Kong licensed exchanges become new engines of Liquidity

This week, Beijing announced that it will dispose of seized Crypto Assets through licensed exchanges in Hong Kong. This move not only injects significant Liquidity into Hong Kong but also solidifies its position as a global pricing hub for the crypto market. Data from CoinGlass and DeFiLlama shows that the open contracts for listed crypto pairs in Hong Kong have surged 35% recently, and the TVL of stablecoins has also increased by 28% month-on-month, indicating that institutional capital is actively deploying.

Regulation and Liquidity as Dual Drivers, Hong Kong Rises as Asia's Crypto Financial Center

The regulatory framework for digital assets in Hong Kong is becoming increasingly完善, including the 2022 Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), the Stablecoin Ordinance that will take effect in August 2025, and the LEAP 2.0 unified licensing mechanism. These policies provide a clear compliance path for global capital, attracting a large influx of institutional funds. Hong Kong not only has regulatory advantages but also takes liquidity as its core competitive strength, becoming the "pressure valve" through which China influences the global Crypto Assets market.

Strategy Shift: Hong Kong Takes Initiative, America Takes a Passive Stance

Unlike the United States, which only holds Bitcoin reserves and has a conservative regulatory attitude, China flexibly allocates Crypto Assets through Hong Kong, actively influencing global price discovery and market narratives. This strategic Liquidity control makes Hong Kong the core of geopolitical and financial leverage. In the future, whether U.S. regulatory agencies will adjust their strategies and whether the global compliance framework can respond to this new situation will become the focus of market attention.

Conclusion

While China is promoting de-dollarization, it is leveraging Hong Kong to create a global super hub for Crypto Assets Liquidity. Driven by both liquidity and regulation, Hong Kong has seized the initiative, becoming a key battleground for global capital and policy games. For investors and policymakers, the rise of Hong Kong signifies the arrival of a new round of crypto financial landscape.