China Banned Crypto Trading & Mining in 2025? A 2021 Story Resurfacing

On August 3, 2025, a viral post by Investingcom claimed that China banned cryptocurrency trading and mining again. The post went viral on social media and put the community into confusion and panic. The allegation soon made people think that a new crypto crackdown was announced in 2025. However, it is false.

The Truth is:

In 2021, the nation prohibited crypto trading, mining, and services. No new law or regulation was enacted in 2025 that confirms a new ban. The official sources revealed that China prohibited trading and mining as early as September 2021. The existing legislation still depicts the blanket ban that was established four years ago and is still in effect.

Source: X

Long History of China Banning Crypto

To understand the confusion, it is important to consider the long and recurrent attempts to regulate cryptocurrencies. The country has been on a rampage to curtail the use of decentralised digital currencies over the last ten years. You can get the long list of restrictions over the years:

• In 2013, it was forbidden to deal with Bitcoin transactions by financial institutions.

• In 2017, the country closed down all domestic exchanges and banned Initial Coin Offerings (ICOs).

• In 2021, implemented a complete ban on crypto mining, trading, and other services, citing economic and environmental risks. This was the worst period of the prohibition in the nation, not only for the local companies but also for the foreign markets.

• In 2025, the same news from 2021 got circulated and went viral again, which misled the market. As many popular channels posted on the same, it looks like an official ban. However, it's false and fake.

Why Did China Ban Crypto in 2021?

• The Chinese government has the view that the volatility of crypto assets is a major threat to its financial system.

• Cryptocurrencies allowed citizens to transfer funds out of the country more easily by circumventing the capital controls.

• China Bitcoin Mining was once home to more than 60%, but the process consumes enormous energy. This made it harder for the country to meet its carbon emission targets.

All these circumstances resulted in the 2021 ruling that completely prohibited cryptocurrency trading and mining in the nation.

Misinformation and Market Volatility

False or outdated reports like the recent one in 2025 often lead to unnecessary market panic. A 2023 study from the Journal of Financial Economics found that crypto price volatility spikes by 15% on average following unverified rumours, especially those about a nation's crypto bans. The latest viral post is another example of how misinformation can disrupt markets, even when it simply repeats old news.

Source: X

Conclusion: No New Ban in 2025

To clarify, the country has not issued any new cryptocurrency ban in 2025. The existing restrictions from 2021 are still active, and no new government orders have been released. Investors and traders should always rely on official sources to verify such claims, rather than social media trends. With the latest news like US China trade and tariff talks often blending facts and fiction. It’s more important than ever to stay informed and cautious.