China Crypto Regulations Unchanged Amid False Ban Claims and Stable Market Activity

False claims are circulating that China has imposed a new ban on cryptocurrency, but these assertions lack credible evidence or official statements from Chinese authorities [1]. The rumors, which rely solely on hearsay, contradict the status quo established in 2021, when China implemented major restrictions targeting crypto exchanges and mining operations. No additional measures have been introduced since then [1].

Bitcoin currently trades at $114,071 USD, with a market capitalization of $2.27 trillion and a 24-hour trading volume of $53.98 billion, maintaining its position as the leading digital asset [1]. Despite the regulatory environment, peer-to-peer transactions continue to operate on messaging apps, and many Chinese users access foreign exchanges using virtual private networks. On-chain data reflects continued activity, with daily Bitcoin transfer volumes frequently surpassing $20 billion, some of which is attributed to addresses associated with China [1].

Hong Kong has emerged as a crypto-friendly pilot zone, implementing a licensing regime for spot trading platforms in June 2025 under its separate legal framework [1]. This initiative aims to attract blockchain projects, exchanges, and token issuers, positioning Hong Kong as a competitive hub in the Asia-Pacific region. Meanwhile, Chinese authorities continue to explore tokenized real-world assets and regulated stablecoins, with pilot programs underway in cities like Guangdong and Shanghai [1].

China’s 2021 regulatory actions primarily focused on closing domestic crypto exchanges, halting mining operations in major provinces, and prohibiting financial institutions from facilitating crypto transactions. These restrictions remain in effect, and no new regulations or penalties have been introduced [1]. Notably, individual peer-to-peer crypto transactions remain legal under the current framework, with only institutional entities barred from offering crypto-related services [1].

On-chain activity and informal market dynamics indicate that China’s interest in blockchain technology is not entirely at odds with its regulatory stance. The country continues to develop its central bank digital currency (e-CNY), which reflects a strategic focus on maintaining monetary control rather than outright rejection of digital assets [1]. As discussions around tokenized securities and real-world assets progress, future guidelines may further shape the regulatory landscape.

In conclusion, the so-called new ban is a misinterpretation or fabrication. China’s existing restrictions remain unchanged, and Hong Kong’s proactive approach offers a counterpoint to the central government’s cautious stance. The absence of new prohibitions means the crypto landscape in China remains stable, with private transactions and informal exchanges persisting despite official policies.

Source: [1] Did China Ban Cryptocurrency? What The Story Is Really About (https://nulltx.com/did-china-ban-cryptocurrency-what-the-story-is-really-about/)