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The recent Shanghai Second Intermediate People’s Court report addresses Bitcoin’s attributes, considering it a distinctive virtual asset due to its scarcity, inherent value, circulation ease, and storage capabilities. Despite China’s ban on cryptocurrencies, the legal assertion demonstrates a shifting attitude, acknowledging the legality and potential of digital assets. However, this brings new challenges in legal interpretation and asset seizure processes in cases involving virtual currencies.

Chinese social media giant, Weibo, deleted 80 prominent crypto-related accounts and removed 17,000 posts related to illegal profit-making despite China’s de facto ban on crypto trading. This impacted crypto-market dynamics, as Weibo’s active user base is around 258 million.

“Cryptocurrency regulation is emerging as an international focal point, highlighting distinct differences between jurisdictions. While China’s court recognizes crypto as property, South Korea targets North Korean digital assets. Meanwhile, the London Stock Exchange and OKX embark on blockchain ventures, and MoonPay adapts to UK regulations.”

“A Chinese government official has received a life sentence due to his involvement in illicit activities, including a Bitcoin mining business. Xiao Yi was found guilty of corruption and the abuse of power. His charges tie back to his relations with Jiumu Group Genesis Technology. The company operated a significant number of Bitcoin mining machines and consumed around 10% of Fuzhou city’s electricity. Yi’s sentence highlights China’s strict stance on illegal cryptocurrency operations.”

Recent allegations suggest Binance, the leading cryptocurrency exchange, possibly continued operations in China despite the country’s ban on cryptocurrencies. Reports claim large-scale business deals ensued, despite Binance denying access to China-based users. These allegations raise important considerations about global crypto markets, regulatory frameworks, and the necessity of abiding by individual nation’s financial regulations.

Anatoly Aksakov, a Russian political figure, suggested potential compatibility between Russia and China’s Central Bank Digital Currencies (CBDCs) for international payments. With aims to use the digital ruble for global economic activities, this proposal hints at the possibility of digital currencies taking the centre stage in world trade.

Chinese tourists are flooding into Hong Kong due to its lenient stance on cryptocurrencies, contrasting mainland China’s strict regulations. Hong Kong, fostering a thriving crypto scene, offers the privilege of buying digital assets with cash, often skipping standard identity verification. This crypto-friendly approach highlights a global, regional, and polarized view on cryptocurrencies.

A growing number of Chinese citizens are participating in “side jobs” that facilitate crypto transactions, despite government crackdowns. However, China’s Ministry of Public Security warns such activities may constitute assisting IT network fraud, with potential jail sentences and fines for those convicted. Authorities claim money laundering and fraud account for the majority of crypto-related crimes.

Documents from the New York Attorney General’s Office reveal Tether’s USDT stablecoin was backed by Chinese securities, contradicting previous denials. Tether held foreign securities, including Deutsche Bank and Barclays Bank, to support reserves. The findings prompt questions about USDT’s safety and legitimacy, and emphasize the importance of transparency in the crypto industry.

Tether addresses reports of backing USDT with Chinese securities, stating the cited materials are outdated and their exposure to Chinese commercial papers was liquidated last year. The company emphasizes the importance of accurate and balanced information for the healthy development of the crypto industry.

Newly disclosed documents reveal that Tether Holdings Ltd., issuer of the largest stablecoin USDT, previously held reserves in Chinese company-issued securities, short-term loans to Chinese companies, and a loan to crypto platform Celsius Network. Concerns arise over Tether’s $5.1 billion lending program, underpinning USDT’s importance for liquidity and stability in cryptocurrency markets.

China’s financial service providers now allow citizens to pay for wealth products using the digital yuan, marking a significant milestone for the nation’s CBDC. The China Securities Regulatory Commission has approved the first application scenario for the digital yuan in the securities market, enabling investors to purchase public funds and financial products with the CBDC.

Greenland Financial Technology Group, a subsidiary of Greenland Holdings, becomes the first state-owned Chinese company to apply for a virtual asset trading license in Hong Kong, with plans to establish a dedicated company for virtual asset trading, including cryptocurrencies, NFTs, and carbon emission-related products. This move signifies the significant potential of Hong Kong’s virtual asset market and its potential as a global crypto hub.