February 28, 2025
By Our Correspondent
Crypto is banned in China but it is still popular in the country. The Chinese government is still not quite sure how to deal with cryptocurrencies, especially when it comes to legal matters. Disputes regarding cryptocurrencies in China abound. Reports now say that On Feb. 23, representatives from the Supreme People’s Court met with other legal bodies to explore research on how to handle crypto-related disputes. Participants reportedly studied criminal and civil cases involving digital assets and discussed new enforcement strategies.
Many scholars from universities took part in the debate. Yang Dong, a professor at Renmin University of China, proposed strengthening China’s regulatory framework to address the risks of cryptocurrencies, citing their potential impact on national financial security.
Xue Chunjiang, secretary of the Beijing No. 3 Intermediate People’s Court, emphasized the fact that Chinese courts have already ruled on multiple crypto-related cases, clarifying adjudication standards. He emphasized the need for further research to finetune the legal approach.
Zhai Chao, vice president of the Supreme People’s Court’s third criminal division, backed the scholars’ proposals, urging a research strategy that accounts for both legal theory and real-world application.
The judiciary’s newfound focus on cryptocurrency has raised doubts about whether China is reconsidering aspects of its crypto policy—or simply reinforcing its existing ban.
In 2021, Beijing imposed a full-scale crackdown on crypto trading and mining, forcing exchanges and businesses to shut down or relocate.
Authorities also banned foreign exchanges from serving Chinese customers. Yet, the decentralized nature of blockchain technology has made total enforcement challenging.
Despite the ban, crypto activity has continued in China. Following the 2021 crackdown, decentralized finance (DeFi) and decentralized exchange (DEX) activity surged as users went after alternatives to centralized platforms.
Chinese courts have also issued rulings that indirectly acknowledge cryptocurrency’s legal status. In one notable case, a Beijing court deemed Bitcoin legal property, granting owners similar rights to traditional assets.
