China Judicial Agencies Step Up Research on Cryptocurrency Legality Amid Ban

China’s Supreme Court and other top judicial bodies are accelerating research into how to legally handle cryptocurrencies, as the country continues to enforce a ban on cryptocurrency trading and mining on the mainland.

On Tuesday, a court in Beijing revealed that representatives from the Supreme People’s Court and several other top judicial bodies, along with academics from universities, held a workshop on Sunday to discuss legal research on cryptocurrencies.

The research project, led by law professor Yang Dong from Renmin University of China, focuses on resolving cryptocurrency-related lawsuits. According to Yang, the research results could help improve China’s cryptocurrency regulatory system, as these lawsuits often involve “national financial security issues.” However, the announcement from the workshop did not provide further details on the measures.

Judicial authorities at the workshop also stressed the importance of further research to strengthen cooperation between judiciary and regulatory agencies, and proposed practical solutions to handle cases related to cryptocurrencies.

The legal research process is being accelerated in the context of China continuing to maintain its ban on cryptocurrency trading. In September 2021, the People's Bank of China and several other central agencies issued a notice banning all cryptocurrency trading and mining activities on the mainland. However, unlike mainland China, Hong Kong is open to cryptocurrency companies and allows related businesses to develop.

Last December, in its annual financial stability report, the People's Bank of China also highlighted cryptocurrency regulation, saying it is working to improve the international legal framework for digital assets to ensure financial security and manage related risks.