Chinese authorities have intensified their crackdown on cryptocurrency trading in 2025, reaffirming that all virtual currency activities remain illegal financial operations. The People’s Bank of China (PBOC) warns of renewed risks from speculative trading, building on 2021 enforcement measures that curbed domestic exchanges and mining.
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PBOC’s renewed warnings target virtual currencies, including stablecoins, declaring them without legal tender status.
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High-level inter-agency meetings emphasize stopping illegal crypto transactions amid surging interest.
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China’s estimated 59 million crypto users in 2025 represent 8-10% of global totals, per CoinLaw.io data.
China’s crypto crackdown escalates in 2025: PBOC deems trading illegal, urging caution against risks. Stay informed on regulations to protect investments—explore compliant alternatives today.
What is the Latest China Crypto Crackdown?
China’s crypto crackdown involves renewed efforts by the People’s Bank of China (PBOC) and other agencies to halt virtual currency trading, stating it constitutes illegal financial activities. This follows a high-level meeting last week with the Ministry of Public Security, Cyberspace Administration of China, and Supreme People’s Court. Despite past successes in 2021, authorities highlight ongoing risks from speculative trading accessing offshore platforms.
How Has China Enforced Crypto Restrictions?
China has implemented multifaceted measures to enforce its crypto restrictions, combining technical barriers, financial controls, and public awareness campaigns. The national firewall blocks access to foreign exchanges, while Chinese app stores label offshore crypto apps as high-risk. Banks and payment providers are prohibited from handling crypto-related transactions, effectively isolating domestic users from formal participation.
Additionally, platforms like Douyin and Xiaohongshu have broadened content moderation to curb crypto promotions and investment discussions. State media regularly issues warnings about fraud and market volatility. Lacie Zhang, a research analyst at Bitget Wallet, notes that these strategies have significantly reduced visible onshore activity since 2021, when a notice banned virtual currency speculation and dismantled domestic exchanges.
The 2021 crackdown also targeted mining operations, relocating the industry’s dominant share offshore. According to PBOC statements, these actions rectified market chaos and achieved substantial results. Yet, enforcement evolves with surging global interest; the recent inter-agency meeting underscores Beijing’s commitment to financial stability, viewing crypto as potentially destabilizing.
Zhang explains that while formal channels are curtailed, some activity persists through decentralized tools and cross-border access. “China’s policies have been effective at reducing formal, onshore participation,” she told COINOTAG. “Domestic exchanges exited the market, mining operations relocated, and retail trading activity became far less visible.” This layered approach ensures compliance, though it drives innovation in evasion tactics.
Frequently Asked Questions
Is Cryptocurrency Trading Legal in China in 2025?
No, cryptocurrency trading remains illegal in China in 2025. The PBOC explicitly states that virtual currencies, including stablecoins, lack legal tender status and cannot circulate as money. All related business activities are classified as illegal financial operations, with authorities continuing aggressive enforcement to prevent speculation.
What Risks Do Chinese Users Face with Offshore Crypto Platforms?
Chinese users accessing offshore crypto platforms face significant risks, including potential legal penalties and exposure to fraud. While the national firewall restricts direct access, indirect methods can lead to financial losses from unregulated services. Authorities advise against participation, emphasizing the destabilizing effects on the economy and personal finances.
Key Takeaways
- Ongoing Illegality: Virtual currency transactions are deemed illegal financial activities, with no legal tender recognition for cryptos like stablecoins.
- Enforcement Success: Since 2021, measures have eliminated domestic exchanges and mining, reducing visible retail trading per analyst insights.
- Persistent Demand: Around 59 million users persist via offshore channels, representing 8-10% of global crypto engagement—monitor for regulatory shifts.
Conclusion
China’s renewed crypto crackdown in 2025, led by the PBOC and inter-agency collaboration, reinforces long-standing prohibitions on virtual currency trading to safeguard financial stability. By curbing onshore activities and warning against offshore risks, authorities address speculative surges while demonstrating unwavering policy. As global crypto evolves, staying compliant with Chinese crypto regulations is crucial—investors should prioritize legal avenues and await potential policy adaptations for secure participation.
