China officially approves cryptocurrencies — a major regulatory shift bringing a new phase to the market

A major turning point has arrived in China’s cryptocurrency market, which has been under strict regulation for many years. On July 11, 2025, the Chinese government announced a policy to officially recognize cryptocurrencies, including Bitcoin, as legally protected property. This marks a historic policy shift toward the long-awaited legalization within the industry.

Fundamental Shift in Regulatory Policy

Until now, China has maintained a strict stance against cryptocurrency-related activities, but this decision significantly changes that approach. Digital assets like Bitcoin will no longer be seen merely as speculative instruments but will be recognized as assets protected by law. This approval has established a legal framework that allows individuals and companies to hold and manage cryptocurrencies with confidence.

China’s decision to lift restrictions can also be interpreted as a move to accelerate its entry into the global digital economy. As countries expand their investments in blockchain technology and digital assets, China appears eager to keep pace with this trend.

Impact on the Market and Industry

This policy shift is expected to have a profound impact on China’s domestic cryptocurrency ecosystem. Gaining legal status will lower barriers for institutional investors, and market transparency and trustworthiness are likely to improve. At the same time, the adoption and investment in digital assets are expected to be promoted, leading to increased activity across the Chinese market.

Industry insiders are optimistic that this policy change will lead to further maturity and expansion of the cryptocurrency market. Clarified regulations are expected to enhance user confidence and attract more participants to the market.

China’s official recognition of cryptocurrencies marks a significant turning point in the Asia-Pacific region’s digital economy strategy. The move from long-standing restrictions toward legalization reflects a fundamental change in perceptions and values regarding cryptocurrencies like Bitcoin.