China Maintains Stringent Ban on Cryptocurrencies, Tightens Controls

China, through its central bank and state council, reaffirms its ban on cryptocurrency activities, impacting trading and mining, effective from June 1, 2025.

The ban underscores China’s intent to consolidate digital financial control, affecting local cryptocurrency markets while pushing Chinese users to foreign platforms via VPNs.

China has reasserted its ban on cryptocurrencies, implementing tighter stablecoin controls from June 1, 2025, in Beijing.

This action aims to consolidate control over financial risks and promote the state-backed digital yuan.

China Enforces Stringent Crypto Bans with New Measures

The People’s Bank of China (PBOC) implemented comprehensive bans on cryptocurrency, effective June 2025, aiming to reduce financial instability. Analysts suggest the ongoing regulatory stance deters crypto adoption in China, with strategic focus remaining on the stable, controlled digital yuan. China’s Ban on Crypto: 2025 Market Impact & Investor Guide.

High-level officials, including the Vice Premier, support stringent measures, significantly impacting the digital asset landscape in China.

VPN Usage Surges as China Intensifies Crypto Crackdown

The decision led users to increasingly use VPNs for foreign exchanges, highlighting China’s continued zero-tolerance approach to crypto. The actions primarily affect Bitcoin (BTC) and Ethereum (ETH) and tighten controls on stablecoins to limit illicit finance risks.

China’s Crypto Policy History: From Mining Exodus to Present

Since 2021, China’s crypto crackdowns have consistently pushed mining activities abroad. The recent ban reinforces policies continually enforced since then. Representatives from the People’s Bank of China (PBOC) confirmed:

Analysts suggest the ongoing regulatory stance deters crypto adoption in China, with strategic focus remaining on the stable, controlled digital yuan.