The landscape is somewhat complex, with contradictions between what is officially prohibited, what happens in practice, and what regulators have recently reaffirmed.
📰 What is being reported now about China and crypto?
Recently, the People's Bank of China (PBOC, central bank of China) reaffirmed its stance against cryptocurrencies: in a meeting on the regulation of virtual currencies, it declared that cryptocurrencies —including stablecoins— do not have legal status as fiat money, and its use is prohibited as a means of payment or transfer within the country.
In this context, it warned about the risks posed by cryptocurrencies: money laundering, unauthorized transactions, evasion of capital controls, etc. The bank stated that it will strengthen criminal and regulatory control against unauthorized crypto activities.
In practice, the regulation in effect since 2021 already prohibits trading on exchanges, financial/credit services with crypto, and mining.
Despite this, there are recent reports that Bitcoin (BTC) mining has been reactivated clandestinely in several Chinese provinces with cheap electricity — suggesting that the ban is not being enforced uniformly.
Market data indicates that China regained a significant share in global mining: it is mentioned that ~14% of the global hashrate by the end of 2025.
At the same time, Chinese regulators have expressed concern about stablecoins and proposals for private digital currencies, reinforcing that only a state-backed version (like its e-CNY/digital yuan) would have acceptance.
In summary: yes — there is an official reaffirmation of the crypto ban in China, both for trading, mining and for the use of cryptocurrencies as a means of payment. But at the same time, certain actors have returned to operate in the shadows, especially in mining, creating a reality of "ban with cracks" rather than total eradication.
✅ What it means that "China renews its ban"
When it is said to "renew" the ban, it generally refers to:
Officially ratify that cryptocurrencies remain prohibited as money, means of payment, or financial instruments.
Extend the regulatory reach: it is not enough to prohibit exchanges or mining — there is now also insistence on stablecoins, custody services, transfers, etc.
Notify the population and the financial sector: there are warnings of criminal consequences or sanctions in case of violation, as part of a public deterrence campaign.
Send clear signals to the global market: China reaffirms that its focus is on its own digital currency (CBDC), and not on allowing a free crypto "Westernized" market.
This reaffirmation seeks to close legal loopholes, discourage widespread use of crypto within the country, and prevent the popularity of these currencies from eroding state control over finances, capital, payments, and monetary regulation.
⚠️ Nuances and contradictions: what continues to happen in practice
The situation is not absolute — there are important nuances:
Although official trading and mining are prohibited, mining underground has been reactivated in several areas with cheap electricity. China regained a significant share of global hashrate in 2025.
In 2025, some media pointed to rumors of a "total ban" that included private ownership — but those rumors have been denied or at least discredited by authorities.
There is still a gray area: although crypto activities are prohibited, many individual users can still own tokens — legally, possession has not always been declared a crime (though their use/trading has).
Therefore, although the ban is maintained and renewed by the central government, there is a kind of clandestine "crypto niche": hidden mining, trading off official radars, informal use, etc.
🌐 What it implies for the global crypto market
China's stance has several global effects:
Strong regulatory pressure: it reinforces the narrative that large countries (or at least large powers) can decide to halt crypto, adding uncertainty to the market.
Redistribution of mining: as clandestine mining becomes risky, many miners migrate to countries with cheap electricity and more permissive regulation — changing the geography of global hashrate.
Strengthening of stablecoins and state-backed CBDCs: China pushes its digital yuan (e-CNY) as a regulated alternative, which may encourage other countries to do something similar.
Volatility in response to news: statements from the Chinese government often lead to declines — as the market reacts to fear ("FUD") of new restrictions.
However, the insurgent reopening of mining shows that strict prohibitions can be difficult to enforce fully in a globalized and digital system.
