International Call for Collaborative Management of Cryptocurrency Transactions Reaches China
In the ever-evolving world of cryptocurrencies, China's regulatory stance continues to stand out as a beacon of caution amidst a global landscape that is increasingly permissive.
Despite rumors circulating on social media, China's 2021 cryptocurrency crackdown, which banned crypto mining, trading on exchanges, and related financial services, remains fundamentally unchanged as of 2025. There has been no official new ban or additional restrictions introduced. Private ownership of cryptocurrencies is not explicitly prohibited, and peer-to-peer (P2P) bitcoin trading continues via apps and VPNs within China, with significant on-chain activity linked to Chinese addresses.
When it comes to international banks like HSBC and Standard Chartered, there are no specific, publicly reported changes in their stance or operations linked directly to China’s crypto regulations in 2025. These banks generally adhere to regulatory frameworks in the jurisdictions they operate within, including China’s restrictive policy since 2021, which effectively bars institutional involvement in crypto services. Any involvement in digital asset services in Greater China is more likely to be through Hong Kong’s evolving regulatory landscape rather than mainland China, given Hong Kong’s newly launched crypto licensing regime aimed at fostering blockchain innovation and crypto trading under a more open framework.
Contrasting with China’s focus on state-controlled digital currency (the digital yuan) and stringent suppression of decentralized cryptocurrencies, global cryptocurrency regulation is more heterogeneous and often more permissive or market-supportive. Many countries have introduced clear licensing, compliance requirements, and consumer protections for crypto businesses, with some supporting decentralized finance (DeFi) and tokenization projects. For example, Hong Kong now aims to become a regional crypto hub by leveraging licensing to attract projects, contrasting with mainland China’s approach.
The report identifies risks associated with the growing use of cryptocurrencies in payments and retail investments, emphasizing the importance of regulating the cryptocurrency market. As of the report, 51 jurisdictions worldwide have imposed bans or restrictions on cryptocurrency use. Major financial institutions like HSBC and Standard Chartered Bank are required to incorporate Bitcoin transactions into standard customer oversight in Hong Kong. The Financial Stability Board's recommendations will guide the bank's regulatory approach, and international coordination on cross-border monitoring of crypto assets is a key priority.
In summary, China maintains its strict 2021 crypto crackdown, with no new bans but ongoing limitations on exchanges and mining. Private crypto transactions persist largely via P2P and VPN workarounds despite official restrictions. No direct updates on HSBC or Standard Chartered altering their crypto policies specific to China have been reported, but their activities align with regulatory constraints and are more active in Hong Kong’s developing crypto licensing regime. Globally, crypto regulation varies widely, with many countries adopting frameworks supportive of both crypto trading and innovation, unlike China’s restrictive stance except for state-led digital currency initiatives. This reflects China’s cautious, control-oriented approach to cryptocurrencies, emphasizing sovereignty over digital finance and reliance on the digital yuan, contrasting with the diverse regulatory ecosystems globally.
The business landscape of the cryptocurrency industry continues to be influenced by China's restrictive policies, as evident in the absence of institutional involvement in crypto services by banks such as HSBC and Standard Chartered due to China's policies since 2021. On the other hand, technology like Bitcoin and decentralized finance (DeFi) is being more embraced by several countries, with regulatory frameworks and licensing initiatives aimed at fostering blockchain innovation and crypto trading.
