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China was among the earliest countries to enthusiastically embrace cryptocurrency. The country was one of the largest markets for crypto as the popularity of Bitcoin and Ethereum grew among the citizens. As the demand for crypto grew, China tightened its rules and regulations to maintain stability and protection. As of 2025, China has implemented one significant law that changed the entire landscape of crypto.
Table of contents
Crypto Regulations in China
July 10, 2025 – Shanghai State-owned Assets Supervision and Administration Commission Debate on Digital Assets
- The agencies held a meeting to discuss strategic responses to stablecoins and digital currencies.
- The rapid evolution of digital assets was discussed, and experts who joined the meeting indicated that it can result in softening China’s strict position on crypto.
May 30, 2025- Comprehensive Ownership Ban
- The People’s Bank of China (PBOC) issued a ban on all crypto activities, including trading, mining, and individual ownership.
- The crypto ban decree became effective from June 1, 2025, states the suspension of crypto transactions, asset seizure measures, enforcement, and penalties.
Previous Major Crypto Regulations in China–
| Date | Law/ Regulation | Details |
| September 24, 2021 | Crypto trading, mining, and transactions ban | Effectively banning digital tokens such as Bitcoin |
| June 2021 | Ban on crypto mining | Concerns regarding cryptocurrency |
| January 2018 | Crackdown on cryptocurrencies | Miners shifted operations overseas |
| September 30, 2017 | ICO ban | ICO, crypto exchanges, trading cease |
| April 1, 2014 | Closure of Bitcoin trading | PBOC ordered to close bitcoin trading accounts |
| December 5, 2013 | Banking restrictions | Banks/ payments institutions banned from bitcoin transactions |
| June 2009 | Prohibition of virtual currencies | To prevent purchasing real-world goods |
What is the Chinese Government Saying About Cryptocurrency?
By implementing the recent ban on cryptocurrency, the Chinese government is reaffirming its commitment to centralizing financial control and promoting the use of its state-backed digital currency, the yuan. Its current focus is on:
- Outlawing private ownership of crypto
- Accelerating the adoption of central bank digital currency (CBDC)
- Mitigating financial risks related to crypto
- Reasserts its financial hegemony by banning decentralized crypto
Crypto Tax in China
As China implemented a ban on crypto trading, mining, and ownership, any crypto tax is irrelevant. It has ceased all crypto activity, while focusing on blockchain innovations with its digital yuan. The government is not focusing on crypto tax as long as the crypto ban stays.
Crypto License in China
China does not have any crypto license, as Beijing has expanded its crypto ban. Since no one will be able to hold crypto or other digital assets (except its own digital yuan), a license implementation is not necessary.
Crypto Adoption in China 2025
Before China enforced the crypto ban in 2025, the adoption rate was fluctuating, and the market was unstable. Since Chinese crypto policies are too strict and have made the market sentiment rigid, it has influenced users to use VPNs to access foreign exchanges. This raised some concerns regarding crypto, and eventually, the government banned it.
Government Crypto Holdings
Despite banning private ownership of Bitcoin and other cryptocurrencies, the Chinese government owns a significant amount of Bitcoin. It currently holds 194,000 Bitcoins, worth at least $17.6 billion (estimated).
The government seized 194,000 Bitcoins from the 2019 Plustoken scam. There is a possibility that the Chinese government is getting involved in buying or mining Bitcoins– no official announcement has been made yet.
Conclusion
When crypto was regulated in China, the government had a comprehensive anti-money laundering (AML) and counter-financial terrorism (CFT) framework. However, after its historical changes of banning private ownership of crypto, China is focusing on centralizing the political power and encouraging the country’s own digital currency. Despite the restrictions, use of crypto for illicit activity remains a concern for the Chinese government.
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FAQs
No, as of June 1, 2025, China has implemented a comprehensive ban on all crypto activities, including trading, mining, and individual ownership, making it illegal to hold or transact in crypto.
China banned cryptocurrency to centralize financial control, accelerate the adoption of its state-backed digital yuan (CBDC), mitigate financial risks, and reassert its financial hegemony by outlawing decentralized crypto.
Before the 2025 ban, China’s strict policies led to fluctuating adoption and market instability, pushing users to access foreign exchanges via VPNs. The complete ban aims to eliminate private crypto use.
It’s highly unlikely China will fully unban private crypto ownership in the near future. Their ban reinforces financial control and promotes the digital yuan, with no current signs of reversal for decentralized digital assets.
