As of September 15, 2025, the Bitcoin price against the US dollar is reported at 115,000 USDT, down 0.98% in the last 24 hours. Ethereum is quoted at 4,523 USDT, with a 24-hour decline of 3.09%. However, behind this market volatility is the Chinese government’s comprehensive crackdown on Crypto Assets trading activities.
01 A paper ban, Crypto Assets are completely cold in China.
On May 31, 2025, China will implement a comprehensive ban on all Crypto Assets activities, including trading, mining, and personal holding of digital assets such as Bitcoin (BTC) and Ethereum (ETH).
This move did not come out of nowhere. It continues years of previous restrictive measures and marks a significant upgrade in China’s efforts to centralize financial control and promote its state-supported digital currency - the digital renminbi.
In fact, since September 24, 2021, the People’s Bank of China and ten other departments have jointly issued the "Notice on Further Preventing and Dealing with Risks of Speculation in Virtual Currency Transactions," clearly stating that activities related to virtual currencies fall under illegal financial activities.
02 The strongest regulation, covering all activities in the coin circle without any blind spots.
The Chinese government’s regulatory policy on virtual currencies is clear and consistent. The latest "Notice" reiterates that virtual currencies do not have the status of legal tender and cannot circulate as currency in the market.
All business activities related to Crypto Assets, including the exchange of Crypto Assets, buying and selling Crypto Assets as a central counterparty, providing matching services for Crypto Asset transactions, token issuance financing, and trading of Crypto Asset derivatives, are strictly prohibited and will be resolutely banned in accordance with the law.
It is worth noting that overseas virtual currency exchanges providing services to residents within our country through the internet also constitute illegal financial activities.
03 Market volatility, Crypto Assets across the board retraced.
China’s comprehensive ban has intensified the market’s extreme volatility. Bitcoin has fallen from recent highs, briefly dipping below 115,000 USD. Ethereum has also experienced a significant decline, briefly dropping below 4,500 USD, leading to an overall market downturn.
The total market capitalization of Crypto Assets decreased significantly within 24 hours after the announcement. Due to the market decline, nearly 130,000 people faced liquidation due to virtual coin positions.
04 Multiple reasons driving China to completely ban Crypto Assets
There are multiple considerations behind China’s comprehensive ban on Crypto Assets trading activities.
Energy consumption is a primary factor: the high energy consumption of Bitcoin mining contradicts China’s environmental goals.
Financial control is also an important reason: the government aims to eliminate financial risks associated with decentralized Crypto Assets.
At the same time, Crypto Assets are associated with illegal fund flows, which has prompted stricter regulation. China is also focused on the promotion of its Central Bank Digital Currency (CBDC) - the digital renminbi, leaving no room for competing digital assets.
05 Global Impact, Countries Focus on the Spillover Effects of China’s Policies
China’s cryptocurrency ban has had a profound impact on global markets. The ban triggered panic selling, especially in the Asian markets.
Due to the cessation of operations by Chinese miners, Bitcoin’s hash rate has also seen a temporary decline. Other countries may consider tightening encryption regulation based on China’s stance, and the market is expected to experience higher volatility in the short term.
Some analysts believe that this decline is a necessary correction for an overheated market, while others are concerned that the ban may slow down the adoption of Crypto Assets in the Asian region.
06 How investors should adjust strategies under strict regulation
In the face of China’s comprehensive ban, Crypto Assets investors need to adjust their strategies.
First, strictly comply with laws and regulations, and do not participate in any form of illegal financial activities related to virtual currency.
Follow reliable information platforms such as CoinMarketCap, CoinGecko, etc., to stay updated on market trends and policy changes.
Set price alerts to stay updated on coin price fluctuations. Develop appropriate investment strategies based on investment goals and risk tolerance, including long-term investment, short-term trading, diversification, and regular investment.
07 Future Outlook: What is the Development Direction of Digital Currency?
Despite China’s comprehensive ban on Crypto Assets, the blockchain technology itself is still supported and encouraged.
The Chinese government is actively promoting the development of its central bank digital currency - the digital renminbi, which may be the main direction for the future development of digital currencies.
Globally, the Crypto Assets market may place greater emphasis on compliance and technological innovation, moving towards a more regulated and compliant direction.
Future Prospects
As of the time of writing, according to the latest market data from Gate, the price of Bitcoin is 115,000 USDT, down 0.98% in the last 24 hours, showing an overall market correction trend. Ethereum is priced at 4,523 USDT, with a 24-hour decline of 3.09%.
However, within China, all Crypto Assets trading has been classified as illegal financial activity. The central bank has clearly stated that participating in virtual coin investment trading carries legal risks, and any losses incurred must be borne by the individual.
China’s "de-coinization" has become a long-standing trend, and the once-thriving Crypto Assets trading has officially come to an end in mainland China.
