China Crypto Regulation Timeline
Key Regulatory Milestones
Final Ban Implementation
Banned All cryptocurrency activities are illegal in China.
Including trading, mining, and personal ownership.
- People's Bank of China (PBOC)
- Ministry of Public Security
- Cyberspace Administration of China
- Ministry of Industry and Information Technology
Impact Summary
- Trading on domestic exchanges: Criminal offense - imprisonment + asset seizure
- Mining operations: Complete ban - illegal business activity
- Holding crypto in personal wallets: Illegal ownership - can trigger criminal investigation
- Providing payment services for crypto: Zero-tolerance - services barred
- Advertising or content about crypto: Mandatory blocking and reporting
China’s stance on cryptocurrency has swung from early enthusiasm to a full‑blown prohibition. As of June12025, the People’s Bank of China (PBOC) declared every crypto activity illegal - from trading and mining to simply holding a token in a personal wallet. If you’re wondering whether crypto is regulated in China, the short answer is: it’s not just regulated, it’s banned.
TL;DR
- Crypto regulation China now means a complete ban on trading, mining, and ownership.
- The ban took effect on June12025 via a PBOC decree.
- Multiple agencies - PBOC, Ministry of Public Security, Cyberspace Administration, and others - enforce the rule.
- Violations can lead to prison sentences, fines, and asset seizures.
- Future policy tweaks are being discussed, but no softening has happened yet.
Current Legal Status
Crypto Regulation in China is a comprehensive legal framework that, as of June12025, criminalizes all cryptocurrency transactions, mining operations, and even personal ownership on mainland territory. The People's Bank of China issued the decisive decree on May302025, giving financial institutions, internet platforms, and law‑enforcement agencies a clear mandate to block, report, and seize any crypto‑related activity.
Regulatory Timeline - From 2013 to Full Ban
- December52013 - Banks and payment firms prohibited from handling Bitcoin.
- April12014 - PBOC orders closure of all Bitcoin trading accounts.
- September302017 - Nationwide ICO ban and shutdown of domestic exchanges.
- January2018 - Massive miner exodus as authorities clamp down on mining farms.
- June2021 - Targeted crackdown on remaining mining operations.
- September242021 - Effective ban on digital tokens, including Bitcoin and Ethereum.
- 2022‑2023 - Legal interpretations deny civil claims over crypto losses; blockchain platforms allowed only under state oversight.
- August2024 - Supreme Court revises anti‑money‑laundering laws to treat crypto transactions as explicit money‑laundering channels.
- May302025 - PBOC issues the final decree outlawing all crypto activities.
- June12025 - Ban becomes enforceable nationwide.
Who Enforces the Ban?
Enforcement is a coordinated effort among several powerful bodies:
- People's Bank of China (PBOC) - Issues the regulatory decree, monitors financial institutions, and blocks crypto‑related transactions.
- Ministry of Public Security - Leads anti‑money‑laundering investigations and criminal prosecutions.
- Cyberspace Administration of China - Oversees internet content, forces platforms to block crypto sites and report users.
- Ministry of Industry and Information Technology - Controls hardware supply chains, ensuring mining equipment cannot be sold domestically.
- State‑owned banks and non‑bank payment providers - Required to embed real‑time monitoring systems that flag any crypto‑linked transfers.
Penalties and Notable Court Cases
Violations are treated as serious financial crimes. Sentences typically range from one to five years in prison, accompanied by fines that can exceed 100,000yuan. A landmark case illustrates the judiciary’s hard line:
- August2024 - Beijing No.2 Intermediate People's Court sentenced Liu Zhang to 3.5years and a 40,000yuan fine for facilitating the sale of USDT tokens worth 200,000yuan that originated from fraud victims. The court applied the newly‑established “should have known” standard, expanding liability to those who claim ignorance of illicit fund sources.
What Changed After the 2025 Ban? - Comparison Table
| Activity | Pre‑2025 (Typical Enforcement) | Post‑2025 (Legal Status) |
|---|---|---|
| Trading on domestic exchanges | Heavy fines, account closures; some exchanges operated offshore. | Criminal offense - imprisonment + asset seizure. |
| Mining operations | Regional shutdowns, equipment confiscation. | Complete ban - illegal business activity, equipment export prohibited. |
| Holding crypto in personal wallets | Unregulated - tolerated but monitored. | Illegal ownership - can trigger criminal investigation. |
| Providing payment services for crypto | Licensing restrictions, fines. | Zero‑tolerance - services barred, providers face prosecution. |
| Advertising or content about crypto | Content removal upon request. | Mandatory blocking, reporting, and potential punitive action. |
Is There Any Hope for Policy Softening?
In July2025, the Shanghai State‑owned Assets Supervision and Administration Commission held a closed‑door meeting to discuss “strategic responses to stablecoins and digital currencies.” Participants noted the rapid evolution of digital assets and hinted that the government might reconsider its blanket ban on private crypto. However, no official policy change has been announced, and enforcement remains aggressive.
Practical Advice for Individuals and Businesses
- Stop all crypto transactions immediately. Any trade, purchase, or sale that involves a blockchain token is now a criminal act.
- If you run a financial service, update AML/KYC procedures to flag keywords such as “BTC,” “ETH,” “wallet address,” and “USDT.”
- Audit your IT infrastructure: ensure firewalls block access to known crypto exchange domains and that logging is enabled for any suspicious outbound traffic.
- For overseas operations, keep a clear separation between Chinese‐based staff and crypto‑related activities to avoid cross‑jurisdictional liability.
- Maintain records of any crypto holdings you held before the ban. While the law criminalizes possession, having documentation may be useful for future legal counsel.
How Does This Compare to Global Trends?
China’s zero‑tolerance model stands in stark contrast to jurisdictions like the United States, the European Union, or Singapore, where regulated exchanges operate under licensing regimes. The only area where China shows openness is its own digital fiat project, the e‑CNY, a state‑issued digital yuan that runs on a centralized ledger. The government’s preference is clear: allow blockchain technology when it serves state interests, but ban any decentralized token that could threaten capital controls.
Key Takeaways
- The ban is absolute - trading, mining, and holding crypto are illegal.
- Enforcement is coordinated across multiple powerful agencies.
- Penalties include prison time, hefty fines, and asset seizures.
- Discussions about policy softening exist, but no concrete changes yet.
- Compliance requires immediate cessation of crypto activities and robust monitoring systems.
Frequently Asked Questions
Is owning Bitcoin illegal in China?
Yes. Since the PBOC decree on May302025, any personal ownership of Bitcoin or other cryptocurrencies is classified as a criminal offense. Possession can trigger investigations, fines, and possible imprisonment.
Can I still mine cryptocurrency from a Chinese address?
No. Mining equipment is prohibited from being sold or operated within mainland China. Attempting to mine-even using cloud‑based services-will be treated as illegal business activity.
What are the typical penalties for crypto‑related crimes?
Penalties range from one to five years in prison, plus fines that can exceed 100,000yuan. In severe cases involving large‑scale fraud or money‑laundering, sentences can be longer and asset seizures are common.
Are stablecoins like USDT also banned?
Yes. All digital tokens, including stablecoins, fall under the 2025 ban. The August2024 court case involving USDT confirms that stablecoin transactions are prosecuted under the same anti‑money‑laundering framework.
Will China ever allow private crypto again?
Officially, no. While internal discussions about “strategic responses” have been reported, the government’s priority remains financial stability and capital control. Any future shift would likely come with strict licensing and heavy oversight, not a return to the open market that existed before 2017.
