The new rumors about a cryptocurrency ban in China have caused market volatility, but there is currently no official confirmation, mainly just bad news, worry, and uncertainty being circulated.
Although this ban has caused temporary concerns and led to a slight drop in Bitcoin's price, there is currently no verified evidence of it, and the situation is mainly an emotional reaction to unverified rumors.
MAIN CONTENT
There is no official confirmation about a new cryptocurrency ban in China; most of it is just bad news, worry, and uncertainty.
The market is experiencing short-term volatility, with Bitcoin's price dropping below $113,000, then recovering to $114,426.32.
Many experts and industry leaders have refuted the rumors, emphasizing that there is no basis or official action.
Will China actually issue a new cryptocurrency ban in 2025?
Currently, there is no confirmation or official evidence regarding a new cryptocurrency ban in China. The rumors circulating are mostly based on emotions and unverified sources.
Rumors about cryptocurrency bans in China frequently arise and create a stir, but many previous instances have been confirmed as inaccurate or just recycled old information. This often puts the community in a state of FOMO or bad news, worry, and uncertainty (FUD), causing Bitcoin and the cryptocurrency market to fluctuate unexpectedly.
According to actual data from CoinMarketCap, after rumors emerged on August 2, the price of Bitcoin dropped to a low of $112,360 and then recovered to $114,426.32 at the time of recording (UTC+7). This is a typical sign indicating that the market reacts strongly to rumors but lacks solid foundational support.
What is the impact of the cryptocurrency ban rumors in China on the global market?
Rumors about cryptocurrency bans in China have an immediate impact on global market psychology, leading to short-term price volatility.
China is one of the countries that once played a significant role in Bitcoin mining, trading, and ownership. Therefore, when any rumors about bans or policy changes emerge, the market usually reacts strongly. In the latest incident, Bitcoin dropped more than $2,000 in just a few hours before quickly recovering, proving that the capital still flows back after the rumors subside.
Reports from Chainalysis in 2023 show that China remains in the top 10 countries with a large number of Bitcoin investors and operators, despite having issued several tightening regulations in 2017 and 2021. This indicates that the actual impact of China's ban is significant psychologically, but digital assets still exist and continue to develop outside of traditional regulatory borders.
The truth about 'meme': Why has the phrase 'China bans crypto' become a recurring story?
The phrase 'China bans cryptocurrency' has become a frequent story within the cryptocurrency community, causing an effect of 'bad news, worry, uncertainty' each year.
Over the past decade, global media has repeatedly reported that China has taken steps to tighten or ban cryptocurrencies. However, most of those times have not led to significant policy changes, apart from some official regulations on mining and trading in 2017 and 2021. The recycling of these rumors partially reflects the market's sensitivity to China's moves, but it is also a popular 'meme'.
Shame on you @Investingcom for putting out nonsense!
Dr. Clemen Chiang, global financial market analyst (X.com, 2025)
The spread of rumors, especially through major channels like X (Twitter), has prompted many investors and market experts to speak out against this unverified information, as in the case of Dr. Clemen Chiang above.
What are China's recent moves regarding Bitcoin and digital assets?
As of now (8/2025, according to Vietnam time), no official announcement has been made by the Chinese government regarding a new ban on Bitcoin or other digital assets.
However, sources indicate that China may be reconsidering its stance on owning, trading, and mining Bitcoin, as well as increasing control over Stablecoins, especially as the country is pushing for the development of the digital Yuan. However, this remains at the level of rumors and lacks solid grounds to conclude any specific legal actions.
Chatter had 'zero evidence' to back it up, citing his sources in China.
Su Zhu, co-founder of the Three Arrows Capital hedge fund (X.com, 2025)
Many experts, including Su Zhu, believe that these rumors have no clear evidence, relying only on speculation or concerns about the possibility that China will expand its control over digital assets to prioritize the testing and development of the digital Yuan.
Why is China often associated with rumors about cryptocurrency bans?
China has a history of tightening cryptocurrency regulation, especially regarding trading and mining, but the market continues to exist strongly despite these measures.
China has long been a country with strict regulations on the digital asset market, especially regarding capital control, protecting the national monetary system, and issues related to cybersecurity and anti-money laundering. However, history shows that even when the government issues prohibitions, there are still forms of cryptocurrency trading and investment occurring outside the mainstream system.
Digital assets continue to exist within and around its borders despite crackdowns.
CoinDesk report, Blockchain topic in Asia, 2024
Some researchers also analyze the blockchain technology platform developed by China, such as BSN (Blockchain Service Network), which continues to promote applications using distributed ledger technology (DLT), reflecting a more flexible attitude than a comprehensive ban.
Why does the Bitcoin and cryptocurrency market often react strongly to rumors from China?
The history of Bitcoin and cryptocurrency fluctuations shows that the market is extremely sensitive to rumors, especially from influential countries like China.
When rumors about bans, increased control, or trading restrictions in China emerge, a multitude of investors globally tend to act defensively, such as selling off or reducing their holdings. This leads to significant drops in the prices of Bitcoin and other digital assets in the short term, even though no actual policy changes may occur.
Event Impact on Bitcoin Price Recovery Time after Rumor Mining ban (6/2021) Bitcoin dropped nearly 30% About 2 weeks Trading ban rumor (9/2017) Bitcoin dropped over 10% More than 1 week 2025 ban rumor Bitcoin dropped $2,000 in a few hours Price recovered in 1 day
What is the role of the digital Yuan in the process of spreading rumors about the cryptocurrency ban?
The development of the digital Yuan has increased rumors about the possibility that the Chinese government will continue to tighten regulations on other digital assets beyond this technology.
The digital Yuan is a digital currency project operated by the People's Bank of China, currently being tested in many major cities. This process has led international media to speculate that it could be a move to compete with, or even replace, international Stablecoins and reduce the volume of Bitcoin transactions within China.
However, up to now, there has been no announcement from regulatory bodies confirming a new ban on Bitcoin or other fintech solutions, apart from the ongoing strong development of the digital Yuan.
China’s regulatory stance has historically been strict, but no official updates have been issued this time.
Binance Research report, analyzing cryptocurrency policies in Asia (2025)
Reports from international research units assert that China continues to tightly control digital assets, but has not issued any official policy updates during this round of rumors.
What do experts and industry leaders say about China's cryptocurrency ban rumors?
Experts and leaders in the cryptocurrency industry deny and state that there is no real evidence, asserting that most of it is merely crowd psychology.
Major names in the global digital asset field, such as Dr. Clemen Chiang and Su Zhu, have consistently publicly refuted the hypothesis of a new ban in recent days. On platform X, they assert that the report from Investing.com is unfounded and urge the community to be cautious about this misleading information. This helps investors gain an objective perspective and not be overly concerned about virtual fluctuations.
At the same time, aggregated data from The Block Research and Chainalysis also show that significant capital flows continue to move through various channels despite short-term instability, confirming the confidence of long-term holders (HODLers).
What difficulties does China face when controlling and completely banning cryptocurrencies?
Tightening and prohibiting cryptocurrencies in a large economy like China comes with many challenges both technologically and socially.
Despite increasingly strict legal measures, such as suspending Bitcoin mining activities and increasing controls on capital flowing abroad, some new technologies like VPNs, decentralized networks, and P2P (peer-to-peer) trading still allow the fundamental features of digital assets to exist beyond the authorities' control. This once again emphasizes that a complete ban cannot extinguish the market or stop the flow of digital money from operating underground.
Research from the University of Cambridge in 2024 evaluates that China's hashrate (mining power) has significantly decreased (from nearly 65% to below 15% after the 2021 bans), but clandestine mining activities continue across borders or through international intermediaries.
How does China's cryptocurrency policy compare with other developed countries like the USA, Japan, and Europe?
China is known for its very strict measures on digital assets, distinctly different from the United States, Japan, or EU countries, where these assets are often legalized and supervised by specialized regulatory agencies.
Country/Region Cryptocurrency Policy (by 2025) Practical Examples China Bans trading, mining, increases control Stablecoin, prioritizes the development of the digital Yuan Bitcoin mining drops sharply, digital Yuan trials USA Mostly legalizes, requires tax reporting, controls AML/KYC Bitcoin ETF approved by SEC, many exchanges operate legally Japan Develops clear legal framework, protects investors, supervised by Japan's Financial Services Agency (FSA) Many domestic exchanges licensed Europe (EU) Applies MiCA framework, supports innovation, protects investors Roadmap for cryptocurrency project development, Sandbox testing for DeFi
Conclusion: How should investors respond to rumors about China's cryptocurrency ban?
Investors should remain alert and rely on verified information, avoiding hasty actions in response to unverified rumors about the Chinese market.
The emergence of rumors about cryptocurrency bans in China has become a norm leading to strong market reactions. However, long-term investors, professional traders, and experts all recommend researching information from official sources, closely observing the real price reactions, and learning to manage risks without getting caught up in temporary emotional whirlwinds.
In the long term, China's strict regulatory policies cannot make Bitcoin and global cryptocurrencies 'disappear'; they only push activities into underground forms or safer zones. The HODL belief along with a reasonable asset allocation strategy still plays a leading role for both individual and institutional investors.
Frequently Asked Questions
Will China actually impose a new cryptocurrency ban in 2025?
There has been no official confirmation from the Chinese government. Most of it is just rumors, circulating through social media and lacks real evidence.
How does the price of Bitcoin react after rumors emerge?
The price of Bitcoin quickly dropped to $112,360, then recovered to $114,426.32, indicating that the impact is primarily short-term in terms of market psychology.
Why does China frequently have rumors about cryptocurrency bans?
The history of strict control over digital assets in China, along with a significant impact on the global market, makes every move easily become a topic of speculation.
Will the digital Yuan cause the Chinese government to tighten Bitcoin or Stablecoin regulations?
The Chinese government prioritizes the development of the digital Yuan, but currently, there is no verified evidence of a new ban on Bitcoin or Stablecoins.
How should the market react to rumors of cryptocurrency bans?
Investors should consider information from official sources, avoid FOMO or panic, and adhere to a reasonable risk management strategy.
What is the biggest difference between China's cryptocurrency policy and that of the USA?
China opts for tightening and prohibiting, while the USA legalizes and regulates digital assets under a transparent tax and legal system.
Has cryptocurrency in China completely disappeared after previous bans?
Cryptocurrencies still exist in many underground forms, through various technological methods, even when facing strong bans from the Chinese government.
Source: https://tintucbitcoin.com/trung-quoc-lai-cam-tien-dien-tu/
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