Crypto Regulations In China 2025

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. 

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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