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.
Nasdaq-listed K Wave Media is effectively walking away from its Bitcoin strategy, redirecting up to $485 million previously earmarked for its crypto treasury into artificial intelligence infrastructure.
XingChiMorgan Stanley added another 286.7 Bitcoin worth about $22.5 million, bringing its total holdings to around 2,620 BTC valued at roughly $205 million.
AnaisBrazil has banned foreign exchange providers from using stablecoins and cryptocurrencies to settle cross-border payments, forcing them to use traditional banking channels instead. Crypto trading remains legal, but firms using blockchain for remittances must change their systems by deadlines running to 2027.
WeatherlyStrategy bought $2.54 billion worth of Bitcoin, adding 34,1aalling more buying could follow.
AnaisNayib Bukele leads a 26-country survey with 94% approval while El Salvador keeps buying about 1 Bitcoin a day and holds over 7,600 BTC. His support comes mainly from improved security, not Bitcoin, which most people say has little impact on their lives.
AnaisSouth Korea’s central bank is calling for circuit breakers on crypto exchanges after a major error at Bithumb led to accidental Bitcoin payouts and a brief price crash on the platform. The incident exposed weak internal controls, prompting regulators to push for stronger safeguards and trading halts to prevent similar disruptions in future.
AnaisA fake Ledger app on Apple’s Mac App Store tricked musician G. Love into entering his 24-word seed phrase, which led to the loss of nearly 6 BTC worth over $420,000. The stolen Bitcoin was quickly moved through multiple addresses linked to KuCoin, with investigators saying recovery is unlikely.
WeatherlyMarketVector and Coinbase Asset Management launched a new index that combines Bitcoin and tokenised gold to track modern store-of-value investments. The index uses a volatility-based model and quarterly rebalancing to balance risk and returns between the two assets.
WeatherlyMorgan Stanley will launch its first spot Bitcoin ETF, the Morgan Stanley Bitcoin Trust (MSBT), on the NYSE Arca on 8 April 2026.
WeatherlyJames Wynn lost almost his entire $100 million account, leaving just $900, after a series of 40x leveraged Bitcoin shorts were repeatedly liquidated as prices rose. His sixth liquidation in two weeks on 6 April 2026 capped a rapid collapse, with losses happening in real time on-chain.
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.
OthersThe two popular twin tokens, STEPN (GMT) and Green Satoshi (GNT), plunged following the announcement that the app would ban ...
BitcoinistThe China ban on Bitcoin mining back in 2021 had one of the greatest impacts on the space. On the ...
BitcoinistChina's bitcoin mining ban of June 2021 might have backfired, being now a vivid proof of the network's strength. Collected ...
BitcoinistChina still hosts 21% of the total global Bitcoin hash rate after the local government banned all crypto operations in the country last year.
Cointelegraph