China revisits cryptocurrency regulations
China may lift cryptocurrency ban
Chinese authorities are accelerating their examination of legal aspects related to cryptocurrencies as the country continues to enforce its ban on digital asset trading and mining.
According to The Block, a Beijing court revealed that representatives from the Supreme People's Court, top judicial institutions, and universities convened for a seminar to discuss research and legal frameworks concerning cryptocurrencies.
One of the key projects is led by Yang Dong, a law professor at Renmin University of China. His research focuses on developing effective mechanisms for handling cases involving cryptocurrencies, which he believes could improve the country's internal regulatory framework for digital assets. The professor noted that such cases often involve issues of national financial security. However, the official statement did not outline specific regulatory measures.
Participants of the seminar also emphasized the need to strengthen cooperation between judicial and regulatory agencies, proposing concrete solutions for addressing legal cases involving cryptocurrencies.
Why China banned cryptocurrencies
The renewed focus on judicial research in this field comes amid China's long-standing ban on cryptocurrency trading. In September 2021, the People's Bank of China and several government agencies issued an order prohibiting all cryptocurrency transactions and mining activities on the mainland.
At the time, authorities justified the decision as necessary to protect financial stability, prevent money laundering, and control capital flows. Officials also expressed concerns that digital assets could undermine the country's monetary policy and weaken the yuan. Another major factor was the desire to reduce electricity consumption and carbon emissions, as Bitcoin mining is highly energy-intensive. Meanwhile, China continues to develop its own digital yuan (e-CNY), signaling its commitment to maintaining control over the domestic digital asset market.
Recently, reports have surfaced suggesting that Chinese authorities may have sold 194,000 bitcoins confiscated from the PlusToken Ponzi scheme in 2019.
