China Eyes Fresh Crackdown on Crypto Amid Resurgence in Speculative Trading

Chinese authorities are renewing their absorption connected stopping crypto trading successful the state amid a caller surge successful involvement successful speculative trading.

The People’s Bank of China (PBOC) warned that virtual currencies, including stablecoins, bash not person the aforesaid ineligible presumption arsenic ineligible tender and cannot beryllium utilized arsenic currency successful the market.“Virtual currency-related concern activities represent amerciable fiscal activities,” it said.

Its comments came pursuing a high-level gathering past week betwixt the PBOC, the Ministry of Public Security, the Cyberspace Administration of China, the Central Financial Stability and Development Office, the Supreme People's Court and different authorities departments.

The latest propulsion underscores Beijing’s long-standing stance that each virtual currency transactions are amerciable and perchance destabilizing, adjacent arsenic tens of millions of Chinese users proceed to entree offshore trading services.

In 2021, it published a announcement connected preventing virtual currency speculation and cracked down connected trading, a measurement the PBOC said “rectified the chaos successful the virtual currency market, achieving important results.”

Crackdowns besides extended to crypto mining, forcing the once-dominant home mining manufacture offshore.

China has utilized a operation of measures to ace down connected trading, Lacie Zhang, a probe expert astatine Bitget Wallet, told Decrypt, including method blocks, fiscal restrictions, level moderation and public-risk campaigns.

Access to overseas exchanges is restricted via the nationalist firewall, and Chinese app stores person flagged offshore speech apps arsenic high-risk. Banks and outgo institutions are barred from processing crypto-linked transactions.

Short-video and manner platforms specified arsenic Douyin (TikTok genitor company, ByteDance) and Xiaohongshu (Rednote) person besides expanded crackdowns connected investment-related oregon crypto-promotional content, complemented by regular state-media warnings astir fraud and speculative risks.

“Together, these measures trim disposable on-shore information portion leaving immoderate enactment to migrate to offshore oregon little transparent channels,” Zhang said.

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“China’s policies person been effectual astatine reducing formal, on-shore participation: home exchanges exited the market, mining operations relocated, and retail trading enactment became acold little visible.”

However, these measures person not eliminated involvement entirely. China has astir 59 cardinal crypto users successful 2025, representing astir 8–10% of planetary users, crypto-focused media institution CoinLaw.io estimates.