China’s top court officials have signaled fresh scrutiny of cryptocurrency-related disputes after authorities said they would study judicial rules for cases involving virtual currencies and cross-border finance.
Summary
- China’s Supreme People’s Court said it will study judicial rules for crypto and cross-border finance-related disputes.
- Chinese regulators have already expanded crypto restrictions this year to cover offshore yuan stablecoins and tokenized real-world assets.
- While mainland China continues its crypto ban, Hong Kong has moved ahead with stablecoin licensing and virtual asset regulations.
According to comments made during a Wednesday press conference in Beijing, Liu Guixiang, a member of the judicial committee at China’s Supreme People’s Court, said Chinese courts would carry out deeper research into adjudication standards tied to “emerging cases” involving virtual currencies and overseas financial activity.
Liu also said judicial authorities would accelerate work on legal interpretations related to civil compensation in insider trading and market manipulation cases, though he did not provide a timeline for the measures.
Held under the framework of China’s “15th Five-Year Plan,” the briefing formed part of the country’s long-term policy roadmap through 2030, which includes cybersecurity integration across digital governance and financial infrastructure.
Even as mainland China continues enforcing one of the world’s strictest crypto crackdowns, local courts have previously treated cryptocurrencies such as Bitcoin as virtual property in disputes tied to ownership rights and asset recovery.
At the same time, regulators have tightened restrictions around crypto-linked financial activity. In a February notice issued jointly by the People’s Bank of China, the China Securities Regulatory Commission, and other agencies, authorities expanded oversight to cover offshore yuan-pegged stablecoins and tokenized real-world assets.
The February framework stated that virtual currencies, including Bitcoin, Ether, and Tether, do not carry the same legal status as fiat currency and cannot circulate as money in the market. The notice also classified crypto trading, token issuance, market-making services, and crypto-linked financial products as illegal financial activities.
Alongside crypto trading restrictions, Chinese authorities folded real-world asset tokenization into the same enforcement category. Regulators said tokenized ownership or income rights tied to underlying assets could not be issued or traded unless approved through designated financial infrastructure and existing regulatory channels.
Financial institutions and payment companies were further barred from providing settlement, custody, insurance, or account services connected to crypto activity, while internet platforms were instructed not to promote or host crypto-related businesses, according to the notice.
Another provision in the February guidance declared that civil legal acts involving cryptocurrency investments would be considered invalid, with investors required to bear any resulting losses themselves.
Hong Kong continues separate crypto push
Away from the mainland’s restrictions, Hong Kong has continued building a regulated digital asset sector under a separate legal framework.
Earlier this year, the Hong Kong Monetary Authority issued the city’s first stablecoin licenses to HSBC and Anchorpoint Financial as part of its new licensing regime. The HKMA later warned the public about fraudulent stablecoin projects falsely claiming links to approved issuers.
As previously reported by crypto.news, Hong Kong authorities recently published consultation conclusions for licensing systems covering virtual asset advisory and management services, while confirming plans to move ahead with legislative proposals tied to the sector.
