China formally bans crypto trading and mining to eliminate remaining activity.

China formally bans crypto trading and mining to eliminate remaining activity.

China has formally announced a ban on crypto trading and mining, aiming to eliminate all remaining crypto activity within its borders. This move comes amidst a broader shift in the country's regulatory stance on digital assets, as it seeks to assert control over its financial landscape.

The ban, which includes restrictions on private digital asset holdings, follows a period of internal discussions within Chinese regulatory bodies. While no official legislation has been confirmed, reports suggest that Beijing is exploring deeper controls on public access to decentralized cryptocurrencies. This could potentially require individuals to move their Bitcoin offshore to avoid legal risks, marking a significant shift from previous policies that allowed personal holdings [1].

The potential move has already triggered market concerns, especially in Asia, where Chinese regulatory decisions often influence regional sentiment. Bitcoin's price history has shown sensitivity to policy shifts in China, with past bans on trading and mining causing short-term volatility. Analysts note that a new ban on ownership could further amplify uncertainty, affecting not only prices but also global mining distribution and adoption trends [1].

Notably, while China has taken a hard stance on public crypto activity, it appears to be developing its own digital currency strategy. Officials are reportedly showing interest in a yuan-backed stablecoin, which could serve as a regulated digital asset for cross-border transactions. This suggests a strategic shift from outright bans to a state-led approach aligned with China’s broader digital yuan ambitions [1].

Despite the restrictions, reports indicate that China may still hold a significant amount of Bitcoin, likely acquired before the 2021 trading and mining bans. This highlights a complex dynamic where the country restricts public access to crypto while maintaining strategic digital asset reserves [2].

Globally, Bitcoin remains a strong asset, with 97% of Bitcoin wallets in profit as of late July 2025, according to a report by Glassnode. This reflects a matured market with high liquidity, even amid regulatory challenges [3].

Although enforcement details for a potential new ban remain unclear, unverified claims from the Reddit community suggest that some restrictions on Bitcoin may already be in place. These allegations have not been confirmed by official channels but are circulating widely among crypto observers [4].

The possible return to stricter ownership controls could further distance China from global crypto markets, particularly as other countries explore digital assets as alternatives to traditional fiat. Meanwhile, geopolitical tensions are also shaping the regulatory landscape, with Beijing reportedly preparing national security countermeasures in response to U.S. policies [5].

In a separate development, MicroStrategy has announced its intention to accumulate up to 5% or 7% of the total Bitcoin supply, reinforcing global institutional interest in the asset despite regulatory headwinds [6].

As the situation evolves, investors are closely watching for any official statements from Chinese regulators. A new ban on Bitcoin ownership could have far-reaching implications for both the crypto market and digital asset regulation globally.

References:
[1] https://fortune.com/asia/2025/07/31/china-us-hong-kong-stablecoins-dollar-yuan-genius-act/
[2] https://cointelegraph.com/explained/which-countries-secretly-own-the-most-bitcoin-beyond-the-us-and-china
[3] https://news.futunn.com/en/post/59914255/97-of-bitcoin-wallets-are-now-in-profit-what-does
[4] https://www.reddit.com/r/btc/comments/1mdxn17/bolivia_calls_crypto_reliable_alternative_to_fiat/
[5] https://www.yahoo.com/news/articles/beijing-preps-national-security-countermeasures-161105436.html
[6] https://cryptobriefing.com/bitcoin-supply-strategy-microstrategy/