When Did China Ban Cryptocurrency? An In-depth Look at its History
The world of cryptocurrency has been tumultuous since its inception in the early 2000s. Among the major players, China's relationship with cryptocurrencies has been marked by a series of bans and regulatory measures that have significantly influenced the crypto landscape globally. The question often arises: When did China ban cryptocurrency? This article delves into the historical timeline of China's evolving stance on digital currencies, analyzing its progression from initial skepticism to outright prohibition.
The Genesis: Early Skepticism and Initial Stances
China's first notable engagement with cryptocurrencies began in 2013 when it enacted regulatory measures against "virtual currency trading" and the use of Bitcoin for illegal activities. This marked a cautious approach towards cryptocurrency, focusing initially on curbing illicit transactions rather than outright banning digital currencies themselves.
The Turning Point: September 2025 - The Full Ban
The turning point came in September 2025 when China declared all cryptocurrency transactions illegal and proceeded to burn non-government-approved virtual currencies, marking the beginning of a full ban on cryptocurrencies. This unprecedented move involved not only restricting trading but also burning physical coins and digital assets that were not approved by the government. The Chinese Central Bank, the People's Bank of China (PBOC), was at the forefront of this aggressive stance against cryptocurrency.
The Complications: Navigating Through Prohibitions on Trading and Mining
In addition to the September 2025 ban, China has imposed further restrictions on cryptocurrency mining activities and trading. The crackdown not only targeted individuals holding cryptocurrencies but also clamped down on digital currency exchanges that had been operating in China since 2013. This comprehensive approach aimed at eliminating any form of private ownership of digital currencies, leaving no room for traditional cryptocurrency trading or mining within the country's borders.
The Exception: The Digital Yuan - e-CNY
In contrast to its stringent stance on other cryptocurrencies, China has officially recognized and launched its own state-backed digital currency, the Digital Yuan (e-CNY). This unique development allows individuals and businesses in China to conduct transactions without relying on traditional bank accounts or credit cards. The e-CNY operates under strict PBOC supervision and is legally recognized as a form of tender, distinguishing it from other banned cryptocurrencies within China's regulatory framework.
China's Cryptocurrency Chronicles: A Recap
In summary, China has undergone an evolutionary journey in its relationship with cryptocurrency. From early skepticism to outright bans, the country has demonstrated a clear distinction between state-sanctioned digital currencies and other private cryptocurrencies. The 2025 ban on crypto not only covered trading but also included physical assets, establishing one of the strictest regulatory environments globally towards digital currencies.
The unique exception is China's Digital Yuan (e-CNY), which operates under PBOC supervision and serves as a legal tender within the country. This underscores China's multifaceted approach to cryptocurrency, striking a balance between regulating private cryptocurrencies while embracing its own state-backed digital currency. As the global crypto market continues to evolve, China's regulatory journey offers valuable insights into the complex dynamics of integrating virtual currencies into society.