Did China Ban Crypto Again? Fact-Check & Full Story

The online crypto milieu is now flooded with news reports and viral posts about the Chinese government’s official crypto ban, and it is considered by many a factor that contributed to Bitcoin’s short recession. The info appeared as breaking news, with early reports stating that China officially banned trading, mining, and related services of cryptocurrency. 

While analyzing the news reports and communicating with the official entities, it has been verified that China has not made any official announcement regarding the crypto regulations, and the speculation is a fake rework of the 2021 crypto ban by China.

Latest China Ban On Crypto Can Be Dismissed As Fake News

The news began spreading on August 3rd, 2025, with some versions reporting that China is planning a crypto ban, while other versions claimed that a ban is already live. These posts and articles also included that strict private ownership restrictions were implemented from June 2025. The news spread immediately, especially through X, where millions of people interacted with it. 

However, detailed investigations and enquiries proved that the news stemmed from a baseless origin. In 2021, China declared a major ban on cryptocurrency mining and trading, and the fake news was an exact rip-off of the same news. Following the 2021 announcement, China has not yet made any new rules and regulations that restrict trading and mining.

2021 Crypto Ban by China is Recycled as Latest News

Before the global regulatory frameworks became crypto-friendly, various jurisdictions imposed severe restrictions on blockchain and digital assets, which are still continued by certain governments. The Chinese government used to impose crypto warnings at regular intervals and created several rules and regulations to limit its trading.

The 2021 limitation, in which trading and mining were restricted, was one of the primary reasons for the 2021 bear market. The price of Bitcoin fell from $69K to $30K, and the altcoins witnessed severe bleeding. The perpetrators, by spreading the manipulated news, intend to create a similar scenario in 2025.

Reasons for the 2021 Crypto Ban By China and the Possibility of It Recurring in 2025

While the Chinese regulatory bodies started implementing restrictions on crypto in 2017, the most important decision of a complete ban on Bitcoin mining and trading activities was implemented in June 2021. It resulted in a market crackdown and the migration of mining operations to crypto-friendly nations.

The speculative nature of crypto, the ambiguity in trustworthiness, the volatility risks, the increase in crime rates, and environmental concerns were the major reasons for the intense ban. However, China is now holding a soft stand towards crypto, making it generally not illegal to HODL them.

The developments, such as giving property attributes to cryptocurrencies, the ongoing creation of Yuan-based Central Bank Digital Currency (CBDC), and additional activities, have signaled that China will not ban the crypto industry all of a sudden again. The probability of it occurring again is very low.

Why is China’s Crypto Ban Fake News Trending Online? Who’s Behind It?

According to our analysis, one of the early accounts to promote this fake news was an X (Twitter) handle named Rawsalerts, with 1.2 million followers. Upon understanding the true nature of the news, the handle, which is powered by Polymarket, deleted the tweet and apologized.

Similar to Rawsalerts, numerous prominent X handles and news media services have shared the news, contributing in its addition to the trends. However, the first source of the news has not yet been identified. Who’s behind this remains unanswered.

Current Market Scenario: Bitcoin Sustains the Bullishness

While the fake news slightly decreased the market cap of BTC, it is ignorable compared to its position in the ongoing bull run. BTC is now trading above the 200-day simple moving average, exhibiting 16 green candles in the past 30 days. It has an overall bullishness, but the greed is high.  Currently, it is trading at a price of $114,548.59, a 3.66% downward movement from the past week.

• Fear & Greed Index: 64 (Greed)
• Market Sentiment: Bullish 
• Supply Inflation: 0.85% (Low) 
• Dominance: 61.02% 
• Volatility: 3.23% (Medium)

The Bottom Line: How Not to Fall in Crypto Fake News Traps?

Crypto-based fake news has been in the cryptocurrency industry from the initial stages, and now it has increased to a radical extent. The use of AI technology has boosted it, even confusing the top-tier news providers. As a decentralized sector, the burden of securing the funds is 100% on the owner, and you should always be aware, mindful, and alert while dealing with crypto-related online resources. 

If you happen to interact with any news, including this one, always verify by accessing the official source. Don’t trust the news media fully, even if it is a reputable one. Always do your own research (DYOR)!