đ§Ÿ China Crypto Ban: Whatâs Legal, Whatâs Not
đ« Complete Ban Implemented in 2025
On May 30, 2025, China enacted a sweeping ban that criminalizes personal ownership, trading, and mining of cryptocurrencies, including Bitcoin, Ethereum, XRP, and others .
This move extends previous bans from 2021 (on trading, mining, and exchanges) to now prohibit individuals from holding crypto assets at all .
âïž Legal Status: Property vs. Business
A Shanghai court in March 2025 ruled that crypto assets are recognized as property, allowing individuals to own them.
However, all crypto business activitiesâincluding trading, token issuance, and miningâremain strictly prohibited and may result in penalties or criminal charges .
đŠ Strengthened Enforcement & Bank Oversight
Since the end of 2024, banks and financial institutions have been mandated to track and report crypto-related transactions, especially those involving foreign exchange and large or suspicious trades .
đ Underground Activity Persists
Investors continue offshore OTC trading, VPN-enabled access to exchanges, and peer-to-peer deals to bypass the ban.
Despite legal risks, underground crypto flows reached over $75 billion in the year leading to midâ2024 .
đš Seized Crypto Assets & Government Response
Authorities are grappling with the handling of seized crypto from criminal casesâvalued in the billions of yuanâwith calls to centralize disposal procedures and enhance transparency .
đ Early Signs of a Pivot?
In July 2025, Shanghai regulators held policy roundtables to explore yuanâpegged stablecoins and discuss digital currency innovation, hinting at potential evolution within a CBDCâaligned framework .
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đ Quick Summary
Topic Update
Crypto Activities All personal ownership, trading, and mining banned since May 2025
Court View Crypto recognized as property, but business use remains illegal
Banking Rules Banks must report crypto-related FX and transaction activities
Enforcement Underground trading persists, with notable OTC and peer-to-peer usage
Seizures Authorities managing large-scale confiscated crypto holdings
Outlook Stablecoin discussions may open narrow, CBDC-aligned channels in future
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đĄ Why This Matters
Chinaâs regulatory tightening represents its most restrictive stance yet on crypto, aiming to enforce total control while advancing the digital yuan. The new framework pushes crypto users offshore and favors state-sanctioned digital systems.
This crackdown serves as a case study for how governments may approach decentralized digital assets. Global markets remain watchfulâsmall legal shifts or pilot stablecoin programs could signal shifts in tone, though broad retail access still appears off the table.
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đ Investor Tips
1. Avoid trading or holding crypto within China. Legal risks are realâcriminal charges, fines, or seizure are possible.
2. If exposure is needed, consider Hong Kongâlicensed platforms or legal offshore options with caution.
3. Watch for any official policy updates in late 2025âpartial easing or formally sanctioned stablecoins may emerge.
4. Stay informed through reliable international news sources, as Chinaâs regulatory stance is firm but evolving
