China reportedly considering ban on Bitcoin ownership to promote digital yuan

China is currently contemplating reinstating a ban on Bitcoin ownership that might expand the existing restrictions on trading and mining to also cover private digital asset holdings. Although no official decision has been made, internal discussions among regulators imply that Beijing is considering implementing stricter controls on the public’s access to decentralized cryptocurrencies. This potential development could mean that individuals would need to transfer their Bitcoin overseas to evade legal risks, marking a significant departure from previous regulations that permitted personal cryptocurrency holdings [1].

The mere possibility of this move has already sparked concerns in the market, particularly in Asia, where Chinese regulatory actions frequently influence regional sentiment. Bitcoin’s price history reveals its sensitivity to policy changes in China, as previous bans on trading and mining have led to short-term fluctuations. Analysts believe that a new ban on ownership could further escalate uncertainty, impacting not only prices but also the global distribution of mining activities and adoption rates [1].

While China has taken a firm stance against public crypto transactions, evidence suggests that the country is developing its own digital currency strategy. Officials are reportedly looking into a stablecoin backed by the yuan, which could function as a regulated digital asset for international transactions. This shift indicates a move away from total bans towards a state-driven approach that aligns with China’s broader initiatives surrounding the digital yuan [1].

Despite the restrictions imposed, reports suggest that China may still possess a considerable amount of Bitcoin, likely acquired before the bans on trading and mining were implemented in 2021. This underscores a complex situation where the nation limits public involvement in cryptocurrencies while also maintaining strategic reserves of digital assets [2].

On a global scale, Bitcoin continues to be a robust asset, with a report by Glassnode indicating that as of late July 2025, 97% of Bitcoin wallets were in a profitable position. This demonstrates a mature market with high liquidity, even amidst regulatory challenges [3].

Although the details regarding the enforcement of a potential new ban are unclear, there are unverified claims circulating within the Reddit community suggesting that some restrictions on Bitcoin ownership may already be in effect. While these allegations have not been substantiated by official sources, they are widely discussed among cryptocurrency enthusiasts [4].

If China were to re-impose stricter controls on Bitcoin ownership, it could further isolate the nation from global cryptocurrency markets, especially as other countries are exploring digital assets as alternatives to traditional fiat currencies. Additionally, geopolitical tensions are influencing regulatory decisions, with reports indicating that Beijing is gearing up to implement national security measures in response to policies from the United States [5].

In a separate development, MicroStrategy has revealed its plans to acquire up to 5% to 7% of the total Bitcoin supply, showcasing continued institutional interest in the asset despite regulatory challenges [6].

Investors are closely monitoring the situation for any official announcements from Chinese regulators. A renewed ban on Bitcoin ownership could have broad implications for both the cryptocurrency market and digital asset regulations worldwide.