In 2025, China and Hong Kong use totally different strategies for digital currency and crypto policy. While the mainland is sticking to a strict ban on trade and mining, Hong Kong is developing into a regulated gateway for blockchain applications and web3.
China opts for ban and digital yuan
Since 2017, the Chinese authorities have been maintaining a ban on crypto trade and since 2021 also on Mining. The Central Bank, the People’s Bank of China, sees financial stability and capital control as a top priority. In the summer of 2025, police and supervisors carried out targeted actions against illegal cross -border transactions with stablecoins such as Tether.
Companies on the mainland are not allowed to keep a bitcoin or other crypto currency on the balance sheet. However, since 2019 a trial has been running with the Digital Central Bank Munt E-CNY, which has since been tested in dozens of cities. Beijing presents the E-CNY as an alternative to private crypto currency, with the aim of reducing the influence of the cryptomarket.
Hong Kong is building a regulated market
Hong Kong opts for regulated openness, with clear rules and protection for investors. In April 2024 the first spot ETFs for Bitcoin and Ethereum were launched in Asia. These products make direct contribution and reception of crypto possible, which benefits pricing.
On August 1, 2025, the Stablecoins Ordinance entered into force, one of the first extensive permit systems in the world for publishers of Stablecoins. Strict requirements apply, such as full coverage due to high -quality reserves and exclusion of algorithmic stablecoins.
A week later a first followed: the first global register for tokenization of real assets, such as precious metals and green bonds. The government also started a consultation on stricter rules for over-the-counter trade and crypto storage.
Influence on the international market
Although the American spot ETFs have the greatest influence on the global Bitcoin course, Hong Kong offers an important trading time window in the Asian market. Supervisors expect the local ETF market to grow to a fifth of the size of the American market.
Two models next to each other
The combination of a closed mainland and an open, regulated Hong Kong will continue to exist for the time being. In the coming period, Hong Kong will focus on the issue of the first Stablecoin licenses and further expansion of tokenization in secondary markets. China focuses on the rollout of the e-CNY and combating non-licensed crypto trade.
How these two approaches will influence each other in the long term depends on the willingness of Beijing to continue to grow Hong Kong’s experiment with regulated crypto.
Source: https://newsbit.nl/twee-gezichten-van-china-in-crypto-beleid-verbieden-of-ontwikkelen/
