Key Takeaways
- •China has officially reaffirmed its national ban on all cryptocurrency activities, with a particular emphasis on the risks posed by stablecoins.
- •All forms of cryptocurrency transactions and mining remain illegal within mainland China, enforced by strict government regulations.
- •In contrast to mainland China, Hong Kong is actively developing a regulated framework for digital assets.
Intensified Crackdown on Crypto and Stablecoins
China has once again confirmed its nationwide ban on cryptocurrency activities. This stringent policy, initially announced by the People's Bank of China and the State Council in November 2025, now places a significant focus on the risks associated with stablecoins. The ban encompasses all crypto activities, including trading and mining, reflecting the government's ongoing commitment to promoting economic stability and aligning with a decade-long campaign led by prominent financial regulatory bodies. The People’s Bank of China and the Financial Stability and Development Committee have introduced measures specifically designed to prevent cryptocurrency transactions. A key objective of these measures is to safeguard financial sovereignty and support the development of the digital yuan initiative by mitigating threats posed by stablecoins.
Impact on Bitcoin Mining and Global Markets
The repercussions of China's ban have been felt globally, leading to disruptions in Bitcoin mining operations and significant capital outflows from the region. In response to the crackdown, Bitcoin miners have been compelled to relocate their operations to other countries, such as Kazakhstan. These government actions are strategically implemented to minimize the financial risks associated with crypto assets. Changpeng Zhao (CZ), CEO of Binance, has commented on the regulatory scrutiny faced by the industry, emphasizing the importance of diversifying mining operations globally as miners migrate out of China. China's cryptocurrency policies have resulted in substantial capital shifts offshore, impacting the markets and liquidity of Bitcoin and Ethereum. This situation highlights a stark regulatory contrast with Hong Kong, which is actively evolving its own regulations for digital assets, thereby attracting new investments.
China's Evolving Regulatory Stance on Cryptocurrencies
China has a history of tightening its cryptocurrency regulations, with notable bans implemented in 2013, 2017, and 2021. Each of these measures was aimed at curbing speculative trading and addressing potential economic threats posed by unregulated currencies. Current expert analysis suggests that this latest reaffirmation of the ban will likely encourage further capital to move offshore. Concurrently, the digital yuan is being positioned as a domestic alternative. Observers anticipate that these ongoing measures will significantly alter the global cryptocurrency landscape.
China is reaffirming its nationwide ban on cryptocurrency activities, including stablecoins, as announced by the People's Bank of China and the State Council in November 2025. This ban, aiming to promote the digital yuan, affects global markets with Bitcoin mining disruptions and significant capital outflows, highlighting contrasting regulatory approaches with Hong Kong. pic.twitter.com/o9oY3u5lqR
— Ki Young Ju (@ki_young_ju) July 12, 2024