Is Crypto Legal in China in 2025?

Now, in June 2025, China triggered its harshest crypto crackdown, this time criminalizing ownership itself.

• Is this the final nail, or just another rerun in a long series of threats?
• What’s actually legal today?
• Has Beijing finally succeeded in shutting crypto down for good?

Let’s break it down…

A Full-Court Press on Crypto

According to official notices from the People’s Bank of China (PBOC) issued in May 2025, the new regulations prohibit crypto trading, mining, personal ownership, and even online wallets. Anyone possessing digital assets risks legal prosecution and asset seizure.

This goes further than earlier bans in June and September 2021, which focused on mining and trading but left private ownership somewhat untouched.

China had already banned crypto nearly 18 times since 2009, each time targeting different areas, from ICOs to exchanges to mining, but this is the most comprehensive and enforceable crackdown yet.

Domestic and foreign cryptocurrency exchanges are now blocked, and even privately held overseas tokens can lead to investigations if traced back to Chinese holdings. Enforcement teams have ramped up surveillance strategies to detect and freeze activity beyond China’s borders.

Why Such a Drastic U-Turn?

Bitedge analysts highlight three intertwined motivations behind this latest step:

• Centralized Monetary Control:

Allowing private cryptocurrencies could undermine China’s capital flow controls and weaken the state-dominant financial system built around the digital yuan (e‑CNY).

• Climate & Financial Risk:

Mining’s heavy energy consumption, often coal-based, clashes with China’s environmental goals, while crypto trading persists as a hotspot for illicit activities and volatile speculation.

• Global Currency Strategy:

The ban clears the path for the international roll-out of its CBDC, with China aiming to extend digital yuan use beyond its borders while snuffing out decentralized alternatives.

The ban sent immediate tremors through global markets.

Bitcoin plunged from roughly $111,000 to below $104,000 in hours, with similar drops across altcoins. Onshore panic selling was widespread. However, international trading volumes surged as investors looked to rebalance.

Chinese investors are adapting with creative workarounds. Many are now funneling capital into Hong Kong‑listed firms with virtual asset licenses, such as Guotai Junan International, whose stock nearly tripled upon licensing news. Others utilize VPNs and offshore platforms to maintain exposure.

As China eliminates crypto, other nations double down on it. The U.S. administration, led by President Trump and Vice President Vance, has embraced Bitcoin as a strategic tool, even forming a government Bitcoin reserve and endorsing crypto innovation.

Similarly, South Korea, Japan, and Singapore are actively courting crypto capital and deploying supportive regulation. This geographic divergence reinforces a two-track crypto world: China embracing CBDC dominance, while democracies foster decentralized innovation.

Could the Ban Loosen?

Rumors of a partial or symbolic lift circulated in early 2025, but official statements remain firm; Beijing shows no appetite for reopening private ownership. Meanwhile, litigation in

Chinese courts have occasionally recognized crypto as property. Shanghai judges recently categorized assets like Bitcoin as commodities, but these precedents offer little relief under national policy.

International pressure or internal economic disruptions could prompt reassessment. Forex outflows and slowed innovation may push authorities toward narrowly licensed trading corridors. However, any change would likely still exclude general retail access.

For now, the policy is clear: private cryptocurrency in China is dead as of 2025.

This signals the following:

For China: A wholesale shift toward state-run digital currency networks and tighter financial sovereignty.

For Global Crypto Markets: A dent in liquidity and volatility. China once accounted for ~30% of global trading volume, is now sidelined.

For Investors: Opportunities elsewhere. Hong Kong, South Korea, the U.S., and a lesson in regulatory arbitrage.

For Global Governance: Highlighting a polarized landscape: CBDC-centric autocracies vs. pro-crypto democracies.