Islamabad, Aug 4, 2025: In a firm step to tighten financial control, China bans cryptocurrency trading, mining and all related activities starting May 31, 2025. The ban covers digital assets like Bitcoin and Ethereum, and also applies to foreign platforms offering services to Chinese users.
Authorities have linked the decision to concerns over financial stability, energy use, and capital flight.
This is not China’s first move against crypto.
- In 2013, the country barred banks from handling Bitcoin transactions.
- In 2017, it banned Initial Coin Offerings (ICOs) and closed crypto exchanges.
- By 2021, a wider ban on mining and trading was enforced.
The current restrictions are broader than before, with talk of banning private ownership in the future as China pushes its digital yuan.
Officials say this ban will help protect the economy and strengthen the state-backed digital currency system. The goal is to centralize control and limit unregulated money movement.
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Global crypto markets may see a short-term price dip, as happened in earlier bans. In 2021, Bitcoin fell nearly 30% after similar action by China. However, the long-term impact is likely to be limited. Investors and companies often relocate to countries with more open policies, such as the U.S., Kazakhstan, and especially Hong Kong.
Even as China bans cryptocurrency, many Chinese investors are using legal ways to stay active—mainly through Hong Kong, where crypto businesses now operate under a licensed system. The mainland’s restrictions are strict, but not the end of crypto in the region.
