Hong Kong Enacts Rules to Compel Access to Digital Wallets Under National Security Law

Hong Kong authorities have introduced new regulations requiring individuals to unlock digital devices, including smartphones and laptops, during national security investigations. These powers grant officials direct access to encrypted data and cryptocurrency wallets, such as Bitcoin (BTC) and Ethereum (ETH) holdings stored on personal devices. Under the new rules, refusing to comply with a request to unlock a device will be treated as a criminal offense. The measure is part of a broader expansion of investigative protocols aimed at strengthening national security oversight within the region. Analysts suggest this move could undermine Hong Kong's reputation as a global crypto hub due to heightened privacy concerns. The potential for increased surveillance may lead to capital flight or a shift away from self-custody solutions by travelers and residents.

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