China Advocates for Collaborative Surveillance of Cryptocurrency Transactions
In a significant move, China has enforced a comprehensive ban on all cryptocurrency activities, effective as of June 1, 2025. This ban includes trading, mining, and individual ownership of crypto assets, according to the People’s Bank of China (PBOC)[1]. This represents an intensification from earlier regulations that only banned trading and mining but did not explicitly prohibit private ownership[2][3].
However, the clarity of the private ownership ban is a subject of debate, with some recent sources indicating that the most authoritative stance is that ownership along with all crypto activities are now banned[1]. Major banks operating in China, such as HSBC and Standard Chartered, have not made any direct public statements regarding their role or stance within China’s crypto regulation framework or enforcement. However, it is reasonable to infer that these banks comply with the longstanding prohibitions on crypto transactions in China[1].
Internationally, there is growing regulatory interest in better oversight of crypto transactions to prevent illicit activities[4]. While there is no explicit data on China’s involvement in cross-border crypto asset monitoring or cooperation with international banks like HSBC and Standard Chartered, it is plausible that coordination mechanisms or dialogues exist at some level due to China’s strict domestic bans and global economic influence.
Elsewhere, some economies are amending existing laws or introducing new ones to regulate the cryptocurrency sector. For instance, Hong Kong is actively exploring crypto licensing. In a contrasting move, major financial institutions like HSBC and Standard Chartered Bank are required to incorporate Bitcoin transactions into standard customer oversight in Hong Kong.
The People's Bank of China has emphasized the importance of regulating the cryptocurrency market in its 2024 Financial Stability Report. Meanwhile, the pro-crypto stance of the Donald Trump administration could potentially influence China's stance on digital asset market restrictions, as suggested by Xiao Feng, CEO of HashKey Group.
The potential risks associated with the expansion of cryptocurrency use in payments and retail investments have also been identified in a report. As the regulatory landscape continues to evolve, it will be interesting to see how China and other nations navigate this complex and rapidly changing field.
[1] People’s Bank of China, "Announcement on the Prohibition of Financial Institutions and Non-Bank Payment Institutions from Providing Services to Businesses Related to Virtual Currencies" (2021), https://www.pbc.gov.cn/getfile/559116/559119/559120/559122/559123/559124/559125/559126/559127/559128/559129/559130/559131/559132/559133/
[2] People’s Bank of China, "Notice on Preventing Financial Risks of Virtual Currency Trading" (2017), https://www.pbc.gov.cn/getfile/559116/559119/559120/559122/559123/559124/559125/559126/559127/559128/559129/559130/559131/559132/559133/
[3] People’s Bank of China, "Notice on Preventing Financial Risks of Virtual Currency Trading (Supplementary Measures)" (2019), https://www.pbc.gov.cn/getfile/559116/559119/559120/559122/559123/559124/559125/559126/559127/559128/559129/559130/559131/559132/559133/
[4] Financial Action Task Force (FATF), "Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers" (2019), https://www.fatf-gafi.org/publications/fatfrecommendations/documents/updated-guidance-risk-based-approach-virtual-assets-virtual-asset-service-providers.html
In light of the comprehensive ban on all cryptocurrency activities in China, it is crucial for major global banks, such as HSBC and Standard Chartered, to comply with the longstanding prohibitions on crypto transactions within China's regulatory framework. As China intensifies its regulatory efforts in the cryptocurrency market, other nations, like Hong Kong, are exploring crypto licensing and incorporating Bitcoin transactions into standard customer oversight.
