Fresh speculation claiming China had reimposed a full ban on cryptocurrency activity triggered a wave of confusion across social media this week, despite no official announcement from Beijing.
The rumour, which originated from a prediction platform post on 3 August 2025, briefly rattled the markets before being debunked by experts and Chinese industry insiders.
According to sources close to Chinese regulators, no new policies or directives have been issued regarding cryptocurrency trading or mining.
The existing framework, implemented in 2021, remains the most recent update from the Chinese government.
It prohibits institutions and companies from providing crypto-related services but does not ban individual ownership or private peer-to-peer transactions.
Despite initial panic, digital assets like Bitcoin recovered swiftly once clarification emerged.
As of writing, Bitcoin trades at $114,701, up 1.1% in the last 24 hours, with a market capitalisation of $2.28 trillion.
Trading volume, however, dipped by 17% over the same period, indicating short-term cautious behaviour among investors.
The rumour gained traction after Kalshi, a prediction market platform, posted that China had reintroduced a ban due to concerns about capital flight and environmental impacts.
The post, though lacking evidence, went viral, sparking reactions across the crypto world.
Three Arrows Capital co-founder Su Zhu promptly dismissed the claim, stating there was "zero evidence" from any Chinese source indicating a new crypto ban.
Meanwhile, prominent Chinese crypto journalist Colin Wu also confirmed that the rumours were spreading “without any evidence”.
China’s current stance on cryptocurrency remains based on sweeping restrictions introduced in 2021.
These measures forced domestic exchanges to shut down and banned institutional crypto services, while also targeting mining operations, particularly in provinces like Sichuan and Inner Mongolia.
However, individual transactions have not been criminalised, and activity persists underground, especially in regions with cheap electricity.
In fact, China still accounts for around 21% of the global Bitcoin mining hashrate, despite the 2021 ban.
Source: World Population Review
While mainland China maintains a tight grip on the sector, Hong Kong has adopted a different strategy.
Operating under its own legal and financial system, the city introduced a licensing regime for spot crypto trading platforms in June 2025.
This move aims to attract global blockchain projects and position Hong Kong as a competitive hub for digital finance in Asia.
The contrast between Hong Kong’s approach and the mainland’s restrictions has fuelled speculation that China could eventually adopt a more nuanced policy — especially as regulators continue to pilot projects involving tokenised real-world assets and regulated stablecoins in regions like Shanghai and Guangdong.
Despite repeated clarifications, the spread of false information remains a challenge.
The idea that China has “banned crypto again” continues to resurface whenever there are financial policy shifts or environmental concerns raised by officials.
While current laws prohibit companies and banks from offering crypto services, personal use is not forbidden.
China’s approach to crypto highlights a delicate balance — asserting financial control while cautiously embracing blockchain-based innovation.
The country's continued exploration of stablecoins and tokenised assets, coupled with Hong Kong’s pro-crypto push, suggests digital finance is far from abandoned in China.
Rather than a blanket rejection, Beijing’s focus remains fixed on regulation, oversight and strategic integration.
Metaplanet, a Japanese firm known for its aggressive Bitcoin accumulation strategy, has announced plans to raise approximately $880 million through an overseas share issuance.
XingChiThe UAE has built a Bitcoin reserve of around 6,300 BTC, worth up to $740 million, mainly through state-backed mining. This makes it one of the largest national holders, ranking just ahead of El Salvador.
AnaisA Philippine lawmaker has proposed that the central bank buy 2,000 bitcoins each year for five years, creating a national reserve of 10,000 coins. The plan aims to strengthen the country’s finances and provide a long-term store of value alongside traditional reserves like gold and foreign currency.
WeatherlyJapan plans to tax crypto profits at a flat 20% instead of rates as high as 55%. The regulator also aims to allow crypto ETFs and approve the country’s first yen-backed stablecoin.
AnaisArthur Hayes, the BitMEX co-founder pardoned by Donald Trump, has invested in a stem cell firm with clinics in Mexico and Bangkok. He is also backing crypto treasury firms while warning that the market may already be overheating.
WeatherlyA Pennsylvania lawmaker has put forward a bill to stop politicians and their families from owning or trading crypto while in office. The plan follows claims that Donald Trump has used his role to profit from tokens like his own memecoin.
WeatherlyBitcoin has retraced below $117,000 after reaching an all-time high last week, signaling a pause in upward momentum and growing caution among investors.
XingChiDutch cryptocurrency company Amdax is preparing to launch one of Europe’s most ambitious Bitcoin strategies yet: creating a dedicated Bitcoin treasury firm, seeking a listing on Amsterdam’s Euronext, and ultimately aiming to acquire 1% of the total Bitcoin supply.
XingChiThe SEC has delayed decisions on several crypto ETFs, including Bitcoin, Ethereum, Solana, XRP, Litecoin, and Dogecoin, pushing most deadlines into October. Regulators are working on new listing standards that could allow faster approvals of altcoin ETFs once rules are finalised.
WeatherlyTaiwan’s WiseLink led a $10 million funding round for Nasdaq-listed Top Win International, helping the company buy Bitcoin and expand into digital assets. The deal makes WiseLink the first public Taiwanese firm to back a Bitcoin treasury strategy and aims to combine crypto holdings with cross-border business operations.
WeatherlyKi Young Ju, founder of CryptoQuant, said that Chinese mining pools control 55% of the Bitcoin network hash rate, but the cryptocurrency media believes that the claim of dominance is a key misunderstanding.
MiyukiThe United States has declared that a cryptocurrency mining investment company with ties to China poses a threat to national security, and has ordered the firm to sell its property near an Air Force base in Wyoming. According to Reuters, this move comes as the U.S. increasingly worries about the national security risks posed by Chinese-led acquisitions of U.S. properties near sensitive military bases.
MiyukiChinese scholars acknowledge Bitcoin as property, signaling a potential shift in the country's stance on cryptocurrency. This recognition challenges previous perceptions and may lead to a relaxation of the Bitcoin ban. Market responds positively, with Bitcoin price rising by 1.90% to $64,897.90.
Huang BoContrary to Western perceptions of a complete crypto ban, China's cryptocurrency trade persists, with Binance recording $90 billion in a month. The nuanced reality reveals legal gaps allowing individuals to hold and engage in peer-to-peer trading, challenging the narrative of a blanket ban.
JoyChina is softening its stance on NFTs, with reports suggesting a notable shift in its approach after a year of stringent regulations on blockchain projects.
JixuThe U.S. is seeking the extradition of FTX founder Sam Bankman-Fried after the collapse of his cryptocurrency market in November.
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