Stimuli-responsive circularly polarized luminescence (CPL) materials based on cholesteric liquid crystal (CLC) platforms show great promise for applications in information encryption and anticounterfeiting. In this study, we constructed a mercury ion-responsive CPL system in CLCs by controlling the conjugation degree of axially chiral binaphthyl derivatives. Two chiral binaphthyl derivatives (R/S-1 and R/S-2) were initially used as chiral dopants to demonstrate that CPL inversion (glum values from 0.5/-0.44 to -0.53/0.48) in CLCs could be achieved by modulating the conjugation degree of the chiral binaphthyls. Based on this concept, the thioacetal binaphthyl R-2S was developed and used as a mercury-responsive chiral dopant in CLCs. Under Hg ion treatment, the CPL sign inverted (glum value changed from 0.22 to -0.29) due to the transformation of the thioacetal into an aldehyde group. Additionally, the mercury ion-responsive CPL material was applied in information encryption.