#中国加密新规 China's New Cryptocurrency Regulations: "Under Currents Amid Strict Regulation"

In 2025, China's "high-voltage line" on cryptocurrency remains clear — trading and mining are completely banned, but new trends are lurking behind the policies. On one hand, the digital yuan (e-CNY) is surging forward, with trial trading volume exceeding 70 trillion, becoming the "trump card" of the country's financial technology; on the other hand, local governments are quietly handling confiscated crypto assets, with places like Shenzhen even converting them abroad through third-party companies, raising controversies over "gray operations."

What’s more intriguing is that Hong Kong has become a testing ground: Bitcoin ETFs and licensed exchanges are open to retail investors, while free trade zones in the mainland may also follow suit with pilot programs for "compliant stablecoins." Experts speculate that China may be planning a big move — aggressively targeting the domestic market with the digital yuan while competing for cross-border payment discourse with stablecoins.

However, don’t expect a major policy "turnaround." Regulatory technology is armed to the teeth: on-chain tracking and smart contract analyzers make illegal transactions impossible to hide, and new regulations from the Ministry of Public Security require the mandatory use of national encryption algorithms for key facilities, completely sealing security loopholes. In this game, the tug-of-war between innovation and regulation has just begun.