June 06, 2025
By Anjali Kochhar
In a bold and sweeping escalation of its anti-crypto policy, China has become the first major economy to impose a complete ban on the ownership of cryptocurrencies. This unprecedented move not only targets trading and mining already outlawed in previous years but now criminalises the mere possession of digital assets like Bitcoin, Ethereum, and other decentralised tokens. With this decision, China is sending a clear message: in its future financial system, the only accepted digital currency will be the one it controls the digital yuan.
This development builds on years of increasing restrictions. Since 2013, Chinese authorities have gradually cracked down on crypto-related activities, starting with warnings to banks and escalating to full bans on Initial Coin Offerings (ICOs), crypto exchanges, and large-scale mining operations. Despite these measures, individuals were still permitted to privately own crypto holdings. That legal grey area has now been eliminated, as Chinese regulators move to assert total control over the digital finance landscape.
The central motivation behind this move is China’s push to accelerate the adoption of its Central Bank Digital Currency (CBDC), the digital yuan. As one of the first countries to pilot a CBDC at scale, China views decentralised cryptocurrencies as a threat to its monetary authority, capital controls, and financial surveillance efforts. By banning crypto ownership outright, the government aims to eliminate any competing forms of digital value and drive full adoption of its state-issued currency.
The impact of this decision was immediate. Global crypto markets experienced a dip in prices, with Bitcoin and major altcoins falling as news of the ban spread. Investor sentiment in the region took a hit, particularly among retail holders who now face legal risks simply for holding assets in a wallet.
However, seasoned crypto investors and builders outside of China largely saw this as another reinforcement of a long-standing stance rather than a new surprise. Some view the ban as a strategic opportunity for decentralised finance (DeFi) to prove its resilience beyond state-controlled borders.
China’s full crypto ownership ban represents a historic shift in how governments may choose to engage with digital assets. While it strengthens Beijing’s grip over its financial system, it also raises pressing questions about digital freedom, innovation, and how far states may go to control the future of money.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
