China Advocates for Collaborative Surveillance of Cryptocurrency Transactions
China maintains a comprehensive ban on all cryptocurrency activities, including trading, mining, and individual ownership, with enforcement effective from June 1, 2025, as stated in the People’s Bank of China (PBOC)’s 2024 Financial Stability Report [1]. However, China is considering a policy reversal to allow yuan-backed stablecoins, marking a significant shift that could expand the yuan's global role [2][3].
In the financial sector, major banks like HSBC and Standard Chartered Bank are not explicitly mentioned as having new specific regulatory permissions or direct involvements related to cryptocurrencies in Hong Kong. Instead, global prudential crypto regulations are under review, including calls by the Institute of International Finance (IIF) and trade associations for revising Basel crypto prudential standards that affect all banks' crypto asset exposures globally [4]. These reforms aim to balance safety, innovation, and competitive fairness ahead of a Basel framework update planned for January 2026.
Internationally, China’s steps towards stablecoins appear aligned with broader global trends to enhance regulatory clarity and supervision. China’s proposed roadmap includes regulatory assignments and pilot programs targeting compliance, risk control, and integration with the international financial system [3]. Furthermore, the global prudential standards discussions mirror a coordinated approach among regulators worldwide to address crypto asset risks within banking systems [4].
As of mid-2025, it is worth noting that 51 jurisdictions worldwide have imposed bans or restrictions on cryptocurrency use [5], although the report does not specify which economies may pose risks due to the expansion of cryptocurrency use. The report highlights potential risks associated with the expanding use of cryptocurrencies in certain economies as they are used more in payments and retail investments.
In Hong Kong, the government is actively exploring crypto licensing, although no new information about this licensing is provided [6]. Xiao Feng, CEO of HashKey Group, has suggested that the pro-crypto stance of Donald Trump's administration could influence China to lift its restrictions on the digital asset market [7].
In conclusion, China's cryptocurrency landscape is undergoing significant changes. While a total crypto ban remains in effect as of June 2025, the potential introduction of yuan-pegged stablecoins is being considered to expand the yuan's global role [2][3]. Global prudential regulations affecting banks like HSBC and Standard Chartered are under active revision, with a call for prudential standard recalibration ahead of January 2026 [4]. The report underscores the importance of international coordination in regulatory oversight and cross-border monitoring frameworks to manage crypto asset risks effectively [3][4].
The business sector is closely watching the potential repercussions of China's policy reversal on finance, particularly in relation to yuan-backed stablecoins, which could significantly impact the global role of the yuan. In the face of global prudential regulations under review, major banks like HSBC and Standard Chartered Bank, though not explicitly mentioned with new specific regulatory permissions or direct involvements related to cryptocurrencies in Hong Kong, are grappling with impending changes in Basel crypto prudential standards affecting their global crypto asset exposures.
