• China's central bank and financial regulators have reiterated a comprehensive ban on all cryptocurrency activities, including trading, mining, and real-world asset tokenization.
  • Internet platforms must actively block and report crypto-related content, with expanded enforcement targeting offshore entities and Chinese residents.
  • The policy reinforces Beijing's focus on financial stability and control, contrasting with Hong Kong's more permissive licensing approach.

In late November 2025, the People's Bank of China (PBOC) doubled down on its prohibition of cryptocurrency services during a key regulatory meeting, pledging to intensify crackdowns in coordination with administrative and judicial authorities. The move targets trading, mining, and related speculation to protect what officials describe as "economic and financial order," according to people familiar with the matter.

Efforts to curb crypto have hit a new phase with seven financial industry associations jointly declaring real-world asset (RWA) tokenization illegal on December 5, 2025. This expands existing prohibitions to include stablecoins, mining, and airdrops, even for offshore entities employing Chinese staff. Without compliance, internet companies risk severe penalties, though specific fines remain undisclosed in recent announcements.

"What regulators are really focused on is eliminating systemic risks and illicit flows," said one industry analyst who requested anonymity due to the sensitivity of the topic. Internet firms—spanning tech giants like Alibaba (BABA) and Tencent (TCEHY) to smaller fintech platforms—must now actively monitor and block crypto content, while overseas exchanges are barred from serving Chinese residents entirely. Attempts to reach representatives from major internet companies for comment were unsuccessful or met with standard statements about adhering to local regulations.

China's stance has already reshaped global crypto markets, with its share of Bitcoin mining plummeting from over 50% of the global supply before the 2021 ban to near zero today, shifting operations to the U.S., Russia, and Kazakhstan. This transition previously cost China an estimated $6 billion in annual mining revenue, a figure that persists as a long-term economic impact. The bans also align with carbon neutrality goals by cutting energy-intensive mining, countering global volatility amid rising RWA trends elsewhere.

Political context remains central, with the PBOC, Cyberspace Administration of China (CAC), and other agencies classifying crypto as illegal financial activity without legal tender status, voiding related contracts. A draft cybercrime law adds exit bans for offenders, targeting payment platforms and crypto aids, according to recent reports. This reinforces Beijing's monetary control, mirroring global crackdowns but with stricter domestic enforcement.

Societally, the policy affects miners whose operations have shuttered, investors left without legal protection for holdings, and firms mandated to comply. Authorities cite risks to "people's properties" and order, with courts handling rising civil and criminal cases. Private ownership exists in a gray area, but transactions are illegal for all, including foreigners, sparking debates on financial crime versus innovation.

Historically, bans escalated from 2013 restrictions to the comprehensive 2021 prohibitions, with similar multi-agency actions driving hashrate abroad. Looking ahead, short-term expectations point to stricter enforcement, including RWA blocks, with no approvals anticipated. In the long term, China embraces state-controlled blockchain and Web3 while rejecting decentralized crypto, with experts predicting sustained zero-tolerance that may boost compliant tech but stifle private innovation.

In a related development, Hong Kong issued nine crypto exchange licenses by October 2025, highlighting a regional contrast to mainland policies. This update clarifies that while China's bans are total, special administrative regions maintain distinct regulatory approaches.