China Tightens Crypto Crackdown: Impact on Mining and Global Markets

Source: CoinTribune Original Title: China: The Central Bank Tightens Its Crackdown on Crypto Original Link: https://www.cointribune.com/en/china-the-central-bank-tightens-crackdown-on-crypto/

China Reaffirms Its Crypto Ban

On November 28, the People’s Bank of China (PBC) gathered 13 government agencies to reiterate the ban on cryptocurrencies and stablecoins. Since 2021, these assets have been considered illegal, lacking legal status equivalent to fiat currency. The meeting aimed to strengthen the fight against speculation, money laundering, and illegal capital transfers.

Stablecoins, often pegged to traditional currencies, were criticized for their inability to meet compliance standards. The PBC stressed their potential to bypass capital controls, thereby threatening the country’s financial stability. This meeting marks a new phase in China’s crypto crackdown, confirming that the country will tolerate no deviation from its strict financial policy.

China Bans Cryptos but Receives $3.2 Million for Hong Kong

While China firmly bans cryptocurrencies, a paradoxical situation emerged after the devastating Hong Kong fire. The crypto industry mobilized to collect $3.2 million in crypto, intended for disaster victims. These donations, legal in Hong Kong, raise questions about the coherence of Chinese policy. Could the “resurgence of speculation” mentioned by the PBC include these fundraising efforts? Or is it a temporary tolerance for humanitarian reasons?

Hong Kong, as a special administrative region, enjoys a distinct status allowing some regulatory flexibility. However, this situation highlights tensions between mainland repression and local economic realities. This contradiction illustrates the challenges China faces: how to reconcile a strict crypto ban with their inevitable use in specific contexts?

China, Former Pillar of Bitcoin Mining: What Impact on BTC?

Before 2021, China dominated Bitcoin mining with over 65% of the global hashrate. Despite miners’ exodus following the ban, it remains third in 2025 thanks to clandestine operations and its industrial legacy, proving a persistent influence in the ecosystem. With increased crackdown, could BTC face additional pressure on its price?

Chinese investors, although forced to circumvent restrictions, remain major crypto market players. An intensification of controls could lead to massive sell-offs, causing a short-term drop. However, bitcoin, decentralized by nature, could continue thriving beyond China’s borders. In the long term, BTC’s resilience will mainly depend on its ability to adapt to an increasingly hostile regulatory environment.

China maintains a rigid stance on cryptocurrencies while allowing their use in exceptional cases. This duality raises questions about the future of cryptos in Asia and their impact on the global market. Will China eventually reconsider its position, or will this crackdown mark a lasting turning point?