#中国加密新规 Panorama: Property can be confiscated, trading is illegal, the only way for a compliant public chain to survive
> **Judicial red lines and compliance islands coexist**, China's cryptocurrency ecosystem seeks a fragile balance under high-pressure regulation
In the second half of 2025, China's cryptocurrency policy will enter a stage of refined regulation. On one hand, judicial departments tighten the crackdown on cryptocurrency-related crimes; on the other hand, local judicial authorities for the first time **explicitly acknowledge the 'property nature' of virtual currencies** in legislative documents. This contradictory situation reflects the regulatory authorities' dual attitude towards the value of blockchain technology and financial risks. The following analyzes the current regulatory framework and response strategies from four dimensions.
---
### 1. New Judicial Opinion: Placing a 'Tightening Spell' on Cryptocurrency Trading
On July 28, 2025, the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Public Security jointly issued the 'Opinions on Handling Criminal Cases Related to Assisting Information Network Crime Activities,' for the first time incorporating cryptocurrency trading into the network crime regulation system:
- **Standardization of 'Knowledge' Determination**: If a user continues to engage in cryptocurrency trading after being restricted by a bank due to fraud involvement, and the funds are again suspicious, it can be directly presumed that they subjectively 'know' the crime and will be prosecuted for assisting in information network crime activities.
- **List of Abnormal Transactions**: Transactions using encrypted communication software, trading cryptocurrencies at significantly deviated market prices, etc., are all listed as 'abnormal situations' for judicial monitoring.
- **Strict Sentencing Orientation**: Organizing minors to participate in cryptocurrency money laundering, cross-border transfer of illicit funds, and other activities will face severe penalties, with the number of related prosecutions in 2024 having risen by 42% year-on-year.
> **Judicial red lines and compliance islands coexist**, China's cryptocurrency ecosystem seeks a fragile balance under high-pressure regulation
In the second half of 2025, China's cryptocurrency policy will enter a stage of refined regulation. On one hand, judicial departments tighten the crackdown on cryptocurrency-related crimes; on the other hand, local judicial authorities for the first time **explicitly acknowledge the 'property nature' of virtual currencies** in legislative documents. This contradictory situation reflects the regulatory authorities' dual attitude towards the value of blockchain technology and financial risks. The following analyzes the current regulatory framework and response strategies from four dimensions.
---
### 1. New Judicial Opinion: Placing a 'Tightening Spell' on Cryptocurrency Trading
On July 28, 2025, the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Public Security jointly issued the 'Opinions on Handling Criminal Cases Related to Assisting Information Network Crime Activities,' for the first time incorporating cryptocurrency trading into the network crime regulation system:
- **Standardization of 'Knowledge' Determination**: If a user continues to engage in cryptocurrency trading after being restricted by a bank due to fraud involvement, and the funds are again suspicious, it can be directly presumed that they subjectively 'know' the crime and will be prosecuted for assisting in information network crime activities.
- **List of Abnormal Transactions**: Transactions using encrypted communication software, trading cryptocurrencies at significantly deviated market prices, etc., are all listed as 'abnormal situations' for judicial monitoring.
- **Strict Sentencing Orientation**: Organizing minors to participate in cryptocurrency money laundering, cross-border transfer of illicit funds, and other activities will face severe penalties, with the number of related prosecutions in 2024 having risen by 42% year-on-year.