China has banned the trading of decentralized cryptocurrencies like Bitcoin and Ethereum since June 2025 due to concerns over technological stability and their impact on the Chinese economic system. The Chinese government views decentralized currencies as a threat to capital controls and financial stability.

*Recent Developments:*

- In November 2025, the People's Bank of China held a meeting to strengthen enforcement mechanisms and eliminate illegal cryptocurrency activities.
- China is heavily investing in the digital yuan, the digital currency of the Chinese central bank, to enhance financial oversight and reduce reliance on cash.
- Hong Kong is an exception, having issued a law on stablecoins in August 2025 that allows financial institutions to issue fully collateralized stablecoins backed by reserves¹ ².

*Chinese Projects:*

- *VeChain*: Supply chain platform, with a market cap of $927 million.
- *NEO*: Smart contracts, with a market cap of $265 million.
- *Conflux*: The only blockchain in China that is compliant with regulations, with a market cap of $433 million.

China aims to strengthen the yuan's position in the global financial system by expanding the use of digital currencies¹ ³ ⁴.

Trade smart, not reckless
Mohamed ibn Abdullah