China is in search of to confiscate 61,896 Bitcoin value $5.1 billion, whereas HSBC has begun rolling out its Hong Kong dollar-backed RedCoin stablecoin.
Chinese language prosecutors have utilized to confiscate Bitcoin seized by UK authorities in reference to a large funding fraud. A day later, on October 23, HSBC started making RedCoin out there by its PayMe funds app in Hong Kong, opening entry to a possible person base of greater than 3.3 million folks.
Their timing raises an fascinating query: as governments pursue disputed crypto holdings, are established banks making ready to deliver digital cash right into a extra tightly regulated monetary system?
China Seeks Management of 61,896 Bitcoin
The confiscation utility issues Bitcoin linked to Zhimin Qian, who ran a fraudulent funding operation in China between 2014 and 2017. Prosecutors allege the scheme raised greater than 40 billion yuan by fraudulent funding merchandise, leaving greater than 102,000 buyers with losses.
UK authorities seized the cryptocurrency throughout their investigation. Qian was sentenced to 11 years and eight months in jail within the UK in November 2025 after pleading responsible to buying and possessing prison property.
The newest utility marks one other stage within the dispute over who ought to finally obtain the belongings.
The Tianjin No. 2 Intermediate Individuals’s Court docket accepted the confiscation utility on September 28. The courtroom revealed a discover on October 13, whereas the UK Excessive Court docket dominated on October 12 that Chinese language regulation ought to govern victims’ claims to the Bitcoin. Worldwide crypto media reported the Chinese language confiscation bid on October 22.
The UK ruling didn’t settle possession of the cash. Buyers should nonetheless set up their rights beneath Chinese language regulation, and legal professionals representing claimants have reportedly pursued an attraction.
However the utility doesn’t imply China has taken possession of the cash. The quick growth is a authorized declare over belongings already held by UK authorities. At roughly $82,000 per Bitcoin, the 61,896 BTC can be value about $5.1 billion.
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HSBC RedCoin Goes Dwell in Hong Kong
Whereas the Bitcoin dispute strikes by the courts, HSBC is introducing a special mannequin of digital cash. Right now, the financial institution started rolling out HSBC RedCoin by PayMe, its Hong Kong funds platform. The stablecoin is designed to keep up a one-to-one redemption worth towards the Hong Kong greenback and is backed by segregated, liquid belongings, in response to HSBC.
HSBC Launches HKD-Backed RedCoin Stablecoin for 3.3 Million PayMe Customers in Hong Kong
Based on the South China Morning Publish, HSBC is rolling out its Hong Kong dollar-backed stablecoin, RedCoin, to greater than 3.3 million PayMe customers beginning October 23. The preliminary part… pic.twitter.com/dGitKCfD8Y
— Wu Blockchain (@WuBlockchain) October 23, 2026
The preliminary rollout focuses on person-to-person transfers and funds to retailers. PayMe has greater than 3.3 million customers, and the financial institution plans so as to add stablecoin pockets performance to its Hong Kong cellular banking app later this 12 months.
HSBC RedCoin is issued beneath a license granted by the Hong Kong Financial Authority. The financial institution has additionally outlined plans to increase into institutional and company use circumstances, together with tokenized funding merchandise.
That places the launch inside Hong Kong’s effort to develop a regulated digital-asset market. Though Hong Kong is a Particular Administrative Area of China, it maintains a definite authorized and monetary system beneath the “one nation, two techniques” framework.
Consequently, the launch shouldn’t be interpreted as proof that mainland China is abandoning its personal crypto restrictions. HSBC RedCoin is a Hong Kong dollar-backed stablecoin working beneath Hong Kong’s regulatory framework, not a Chinese language yuan stablecoin issued for mainland circulation.
Bitcoin, HSBC RedCoin, and Digital Cash
The distinction between Bitcoin and HSBC RedCoin highlights two totally different questions going through the digital-asset business: who controls an asset, and the way folks use it.
Bitcoin operates on a decentralized community, however disputes over stolen or seized holdings can nonetheless contain nationwide courts, regulation enforcement companies, and competing claims from victims. The Chinese language utility demonstrates how troublesome it may be to ascertain possession when cryptocurrency linked to alleged prison exercise crosses borders.
HSBC RedCoin takes a extra typical route. Its worth is tied to a nationwide forex, it’s issued by a licensed monetary establishment, and its preliminary use circumstances middle on funds by established banking infrastructure.
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The publish China Needs $5.1B in Bitcoin, Now HSBC Is Launching RedCoin in Hong Kong appeared first on 99Bitcoins.
