China Revisits Crypto Laws as Mainland Ban Faces New Scrutiny

The global crypto community is closely watching China as its lawmakers and legal experts re-evaluate how to handle cryptocurrency-related cases—all while maintaining a strict nationwide ban on digital assets.

Last week, Beijing hosted a high-profile seminar bringing together some of China’s leading legal and academic minds. The discussions focused not only on reinforcing the crypto ban but also on crafting better legal frameworks for dealing with crypto-related disputes and financial security risks.

🔍 Strengthening Legal Coordination on Crypto Cases

One of the key figures at the event was Yang Dong, a law professor at Renmin University of China, who led a research project on managing crypto-related legal cases.

“These cases are a matter of national financial security and must be handled with utmost clarity.”

However, no specific recommendations or legal proposals were disclosed during the seminar.

A key theme of the discussions was the need for improved cooperation between China’s judiciary and financial regulators. The seminar participants called for practical legal mechanisms that would allow authorities to efficiently manage crypto-related cases.

While China’s stance on crypto remains unchanged since its 2021 ban, the growing number of crypto-related legal disputes suggests that regulators may need to redefine their judicial approach.

🚫 China’s Crypto Ban: Still in Effect, But Not Completely Enforceable

China has officially banned crypto trading and mining since September 2021, when the central bank and multiple state agencies issued a joint crackdown.

Yet, despite the ban, crypto trading persists through underground channels, creating legal gray areas that make enforcement difficult.

This ongoing regulatory tension has fueled debate among experts over whether China should:

🔹 Maintain the ban but enhance enforcement mechanisms
🔹 Introduce legal clarity to manage inevitable crypto-related disputes
🔹 Loosen restrictions or reconsider a regulated crypto framework

Many crypto experts have argued that China’s strict stance is unsustainable and could eventually lead to policy shifts in response to global market pressures.

🌎 Global Ripple Effect of China’s Crypto Policies

China’s hardline approach to crypto has had far-reaching consequences, forcing major players to relocate their operations.

One major shift has been the rise of Hong Kong as a crypto hub. While mainland China remains anti-crypto, Hong Kong has actively:

✅ Welcomed crypto firms
✅ Positioned itself as a global digital asset center
✅ Developed regulatory frameworks to support blockchain innovation

China’s crypto exodus has also reshaped global trading volumes, influencing regulatory strategies in other financial jurisdictions.

💭 What’s Next for China’s Crypto Stance?

While China shows no immediate signs of reversing its crypto ban, the increasing legal complexity surrounding digital assets could force a shift in policy over time.

With Hong Kong embracing digital assets, and crypto traders continuing to operate despite restrictions, China may eventually be compelled to provide clearer legal pathways for digital asset management.

For now, the global crypto industry will be watching to see if China’s legal recalibration leads to greater clarity—or a deeper crackdown.