#MarketRebound

China: Workarounds and Innovations Despite Restrictions

China has implemented a blanket ban on cryptocurrencies, though it still permits mining activities. The People’s Bank of China (PBOC) declared cryptocurrencies illegal, citing a risk to financial stability, and warned that the asset class “seriously endangers the safety of people’s assets.”

Despite the ban, crypto trading in China continues through foreign platforms. The country lacks a clear crypto framework, and the government has consistently reinforced prohibitions on crypto exchanges since 2013 and has shown no signs of loosening its restrictions.

The Chinese government has, however, shown an interest in incorporating blockchain technology for enterprise solutions in logistics and finance. Furthermore, the country has actively tested its Central Bank Digital Currency (CBDC), the digital Yuan, and has introduced legislation around it, granting it legitimacy.