Recently, some social media accounts have begun to spread false rumors that China has once again banned cryptocurrency.
However, these claims are not based on official sources and are inconsistent with existing regulations. Here are four important facts about China’s cryptocurrency policy:
- Hong Kong welcomes the cryptocurrency sector. Hong Kong, a special administrative region in China, has embraced cryptocurrency as a pilot region. Local regulators continue to license crypto exchanges.
- Individual transactions are not prohibited. Individuals are not banned from buying and selling cryptocurrency in China. Only financial institutions and businesses are prohibited from providing cryptocurrency services. Personal cryptocurrency ownership is legal.
- Bitcoin Mining Continuation: Bitcoin Mining remains a viable option in parts of China due to its affordable energy costs. Despite the 2021 ban, many miners continued their operations underground.
- Stablecoins and RWA interest: Chinese authorities have expressed interest in Stablecoins and launched a project that represents real world assets (RWA).
China has not recently officially announced new regulations on cryptocurrency. The national cryptographic ban dates back to 2021. The latest rumours relate to China’s efforts to strengthen financial management and accelerate the adoption of the state-backed digital currency, the Digital Yuan (CBDC). However, there are no new bans at the moment.
*This is not investment advice.
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