China Imposes Tough Regulation on Bitcoin Every Four Years
China has historically implemented stringent policies that have significantly shaped the cryptocurrency sector, with regulations often appearing to coincide with global price movements linked to Bitcoin's (BTC) four-year cycle. This has led some analysts to suggest an awareness of these cycles within Chinese regulatory actions.
A Chronology of China's Crypto Regulations
Over the past twelve years, four major regulatory actions have systematically defined the legal status, usability, and integration of crypto assets within China's financial system. These interventions occurred in 2013, 2017, 2021, and 2025.
In December 2013, five ministries, spearheaded by the People's Bank of China (PBoC), released a seminal joint statement that provided the country's first comprehensive definition of cryptocurrency. This document, titled "Warning on Bitcoin Risks," explicitly declared that Bitcoin was not a currency, not legal tender, and that financial institutions were prohibited from offering any Bitcoin-related services. This marked the initial systematic restriction of cryptocurrency activities in China.
The subsequent significant intervention occurred in September 2017, when seven ministries jointly issued a statement titled "Warning on Risks of Financing Through Token Issuance." This directive led to a complete ban on all Initial Coin Offering (ICO) processes within the country. Project teams were instructed to return funds that had been raised, and cryptocurrency exchanges were designated as illegal financing platforms. This event, widely known as the "94 Incident," had a profound impact on global markets and is credited with definitively concluding the ICO era in China.
A declaration signed by ten government agencies in September 2021 represented China's most aggressive regulatory move to date. This statement categorized all cryptocurrency transactions and crypto services as illicit financial activities. The crackdown on crypto mining intensified, and numerous new oversight and enforcement mechanisms were implemented, with law enforcement agencies working in close coordination. This regulatory text was widely interpreted as an expansion of the scope of all regulations that had been put in place since 2013.
Further reinforcing its firm stance, a working meeting held in November 2025, attended by thirteen ministries, reaffirmed China's tough approach to crypto assets. This meeting included representatives from the Ministry of Internal Affairs, the judiciary, the central bank, and financial regulators. The primary objectives were to strengthen oversight of crypto transactions, suppress speculation and illegal activities, and address market "disorders." Officials reiterated key principles: "Cryptocurrencies do not have the same status as legal currencies, cannot be used as payment, and all related activities are considered illegal financial transactions."
The Bitcoin Cycle Connection
The consistent alignment of these major regulatory actions with Bitcoin's traditional four-year cycle has fueled speculation among some analysts who claim that "China understands the Bitcoin cycle."