In a sweeping regulatory escalation, Chinese authorities have issued two major directives aimed at eradicating cryptocurrency activity within its borders. The first, confirmed by multiple industry sources in Beijing on April 10, 2025, orders all internet and technology companies to immediately cease providing any services related to digital assets. This includes hosting trading platforms, processing payments, advertising, and distributing applications for wallets or exchanges.
The mandate specifically targets internet infrastructure, extending far beyond previous bans on financial institutions and domestic exchanges. Companies like Tencent, Alibaba, and Baidu must now ensure their platforms—including cloud services, content delivery networks, and social media—do not facilitate crypto transactions, mining, or related discussions. The prohibition aims to sever all technical and commercial links between China's digital ecosystem and the global crypto market, making participation for the average citizen virtually impossible.
Concurrently, a joint notice from eight government bodies, including the People's Bank of China (PBOC), has banned the unapproved overseas issuance of yuan-pegged stablecoins. The regulation prohibits any entity, domestic or international, from issuing such stablecoins without official approval and forbids domestic firms from facilitating these activities through overseas affiliates. The PBOC reiterated that stablecoins, including those like Tether, "have no legal tender status in the country" and pose risks to monetary sovereignty, capital controls, and financial stability.
Financial experts cite China's motivations as threefold: maintaining strict capital controls and yuan stability, preventing financial risk and speculative bubbles, and promoting the adoption of its own central bank digital currency (CBDC), the digital yuan (e-CNY). Dr. Li Wei, a Fintech professor at Peking University, stated, "This move systematically removes the infrastructure that makes participation feasible for the average citizen."
The global market reacted with immediate volatility and price dips. Long-term, the actions accelerate the industry's geographic shift, with companies relocating services from hubs like Hong Kong and Singapore, and nations like the UAE and Switzerland positioning themselves as crypto-friendly alternatives. The bans also spur development of more decentralized, censorship-resistant technologies.
