China’s Crypto Ban Myth: Why This Narrative Refuses to Die in 2025
Another year, another 'China bans crypto' headline—but the dragon keeps breathing fire.
The Ghost of Bans Past
Beijing's 2021 crackdown was real, but decentralized networks don't read memos. Mining ops just tunneled underground—literally—while OTC desks kept the yuan flowing through shell games that'd make Wall Street blush.
Why the FUD Sticks
Western media loves a 'China kills crypto' story almost as much as hedge funds love liquidating leveraged longs on the rumor. Never mind that Hong Kong quietly greenlit ETFs or that Tether volumes suggest someone's still trading.
The New Reality
Cold wallets don't care about geopolitical theater. As Bitcoin's hashrate proves, capital flows where it's treated best—even if that means pretending to be a 'data processing center' in Inner Mongolia.
So next time you see the ban narrative resurface, remember: In crypto, the most profitable truths are written in code, not policy papers.
X post suggesting that China banned crypto, with an attached community note | Source: X
Still, it didn’t take long for users to point out past instances of supposed Chinese crypto bans. One user shared an overview of reports from 2013 to 2021, showcasing how rumors can have a significant impact on crypto.
china banning Bitcoin is basically a crypto bear market tradition at this point.
same plot, new headline. every cycle, same FUD rerun.
let's take a walk down memory lane:
• 2013 – china says "no BTC for banks" bitcoin hits $1,150
• 2014 – fake news ban panic , $430 dip
•… pic.twitter.com/islFEVQtyd
In reaction, some users shared a humorous meme referencing South Park. The meme pokes fun at the crypto market’s irrational reaction to supposed big regulatory news from China.
Why the Chinese crypto ban rumor won’t die
In reality, top Chinese regulators, led by the People’s Bank of China, implemented a full ban on all crypto transactions and mining in September 2021. Authorities cited concerns over energy usage as the main reason for the mining ban.
In addition, regulators were concerned about crypto’s use in illegal activities, as well as its role in facilitating capital flight. The country subsequently cracked down on illegal mining operations, pushing many of them to countries like Kazakhstan. Still, illegal mining operations persist in China, and crypto is still being used in bribery.
For crypto markets, regulatory news often has the biggest impact. Huge economies like China have the potential to significantly influence demand for crypto assets. At the same time, few traders outside of China follow its politics closely enough to verify unproven rumors.
For this reason, social media users looking for engagement will likely report that China banned crypto again in a few months.
