Hong Kong's New Powers Turn Your Crypto Into Someone Else's Asset

The Times of India reported today that, starting in March 2026, police powers in Hong Kong have been expanded. In cases related to "national security", officers can now demand passwords and access to smartphones, laptops, and other devices. Refusing to comply - or providing false access - can lead to penalties, including imprisonment. These powers apply not only to Hong Kong residents but also to foreign nationals, even those merely transiting through the city.

What does this have to do with cryptocurrencies? Quite a lot. Owning crypto ultimately comes down to having exclusive access to a secret - your private keys or seed phrase. Anyone who sees your seed phrase and remembers or copies it effectively becomes the owner of all associated addresses and the funds held on them. There is nothing to stop them from transferring any funds - not just the ones currently held there, but any that may ever be sent to those addresses in the future.

In Hong Kong, these new powers effectively give law enforcement the ability to take control of someone else's crypto. And they do not even need a court order to do so.

Do not store private keys or seed phrases on your electronic devices - especially if you are taking them with you to Hong Kong.