China’s Supreme Court Stresses Need for Digital Currency and Virtual Asset Laws

• Supreme Court journal highlights need for laws on virtual assets and digital transactions to curb crypto-related crimes.

• Chinese courts treat cryptocurrencies as protected virtual property despite a nationwide ban on trading and speculation.

• Recent 2025 reforms include anti-money laundering rules classifying virtual asset transactions as criminal offenses, with 47 guiding cases on data rights.

China’s Supreme Court advances digital currency laws in 2025 journal to tackle crypto cybercrimes. Explore reforms for virtual assets, property rights & blockchain. Read now for latest updates! (148 characters)

What Are China’s Digital Currency Laws?

China’s digital currency laws currently enforce a total ban on cryptocurrency activities like trading, mining, and speculation, while recognizing cryptos as virtual property with economic value. The Supreme People’s Court, in its sixth issue of the 2025 Digital Rule of Law journal, calls for enhanced legal frameworks to handle digital transactions and virtual assets amid rising cybercrimes. This publication, produced by the People’s Court Press, covers reforms for blockchain, data protection, and AI-generated content copyrights.

Does China’s Supreme Court Recognize Cryptocurrencies?

Yes, Chinese courts consistently classify cryptocurrencies as virtual property entitled to legal safeguards under civil law. However, any transactions breaching public policy, such as trading or using them as currency, remain invalid. The 2025 journal introduces “controllable electronic records” as a new property category to refine commercial regulations.

It draws lessons from international examples, like the U.S. 2022 updates to commercial laws for electronic currencies and distributed ledger technologies. Domestically, the amended Anti-Unfair Competition Law, effective October 15, 2025, bans unauthorized data use, promoting fairness in digital markets.

Internet courts established in November 2025 now specialize in disputes over virtual property, data ownership, and online competition. This builds on August 2024 amendments by the Supreme People’s Court and Supreme People’s Procuratorate, which integrated virtual asset transactions into anti-money laundering statutes for the first time since 2007.

In August 2025, the court’s 47th batch of guiding cases focused on data rights disputes, balancing interests of data owners, processors, and users through six precedent-setting examples.

Frequently Asked Questions

Does China Ban All Cryptocurrency Activities?

China imposes a comprehensive ban on cryptoassets, prohibiting mining, trading, public offerings, and speculation. Courts protect cryptos as property but void illegal transactions. The only permitted digital currency is the central bank digital yuan from the People’s Bank of China. (47 words)

What Reforms Are Proposed for Virtual Assets in China?

The Supreme People’s Court’s 2025 Digital Rule of Law journal proposes legal updates for digital transactions, including new property classes like controllable electronic records. It aims to equip courts for blockchain challenges, enhance cybercrime procedures, and align with global standards for virtual property protection. (52 words)

Key Takeaways

• Rising Cybercrimes Drive Reforms: Supreme Court journal targets crypto-linked offenses with calls for comprehensive digital laws.
• Virtual Property Status: Cryptocurrencies gain legal recognition as assets, despite trading bans, via judicial precedents.
• Specialized Courts & Cases: Internet courts and 47 guiding cases strengthen data and virtual asset dispute resolution.

Conclusion

China’s digital currency laws balance strict crypto bans with protections for virtual assets as property, as emphasized by the Supreme People’s Court’s 2025 Digital Rule of Law journal. Ongoing reforms in anti-money laundering, data rights, and commercial codes signal a maturing framework for digital transactions. Businesses and individuals should monitor these developments for compliance in the evolving blockchain landscape, ensuring secure handling of virtual property amid global tech advancements.