New FUD Spreading: Has China Really Banned Bitcoin and Cryptocurrencies Again? Here’s the Truth

In recent hours, some social media accounts have begun spreading false rumors that China has banned cryptocurrencies again.

However, these claims are not based on official sources and contradict existing regulations. Here are four important facts about China’s cryptocurrency policies:

• Hong Kong is welcoming the cryptocurrency sector: Hong Kong, a special administrative region of China, has embraced cryptocurrencies as a pilot region. Local regulators continue to license crypto exchanges.
• Individual transactions are not prohibited: Individuals are not prohibited from buying or selling cryptocurrencies in China. Only financial institutions and companies are prohibited from offering cryptocurrency services. Personal cryptocurrency ownership is legal.
• Bitcoin mining continues: Bitcoin mining is still a viable option in some parts of China due to affordable energy costs. Despite the 2021 bans, many miners continued their operations underground.
• Stablecoin and RWA interest growing: Chinese authorities have begun to show interest in stablecoins and projects that tokenize real-world assets (RWA).

China hasn’t officially announced any new regulations regarding cryptocurrencies recently. The country’s crypto ban dates back to 2021. The latest rumors are linked to China’s efforts to tighten financial control and accelerate the adoption of its state-backed digital currency, the digital yuan (CBDC). However, there are currently no new bans in place.

*This is not investment advice.