By 2025, the crypto policies of China and the US presented a stark contrast: China completely banned cryptocurrency activities, viewing them as illegal financial activities, and vigorously promoted the digital yuan; while the US, while strengthening regulation, maintained an open attitude towards certain crypto activities (such as Bitcoin spot ETFs) to promote innovation, but remained vigilant against risks such as money laundering and fraud. Overall, this presented a pattern of China's strict ban versus the US's prudent regulation.

China's Policy: Strict Ban, Comprehensive Upgrade

Comprehensive Ban: In 2025, China further upgraded its ban, completely prohibiting cryptocurrency trading, mining, issuance, and the provision of related services. Individual holdings were also restricted. Illegal Financial Activities: The official stance clearly stated that virtual currency-related business activities constitute illegal financial activities, disrupting financial order and involving risks such as money laundering and fraud. Digital Yuan: The focus was on developing and promoting the digital yuan, replacing uncontrolled cryptocurrencies with a state-led digital currency. Strict Enforcement: Violators would be held criminally liable, and financial institutions were prohibited from providing any services related to virtual currencies. US Policy: Prudent Regulation, Embracing Innovation

Regulatory Framework: The US adopts a "divide and conquer" approach to cryptocurrency regulation, with agencies such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) each having jurisdiction. Market Openness: Approval of Bitcoin spot ETFs demonstrates recognition of mainstream crypto assets and openness to market access. Stablecoin Focus: Strengthened regulation of stablecoins, requiring robust reserves and operational mechanisms. Compliance Requirements: Emphasis on anti-money laundering and Know Your Customer (KYC) regulations, requiring exchanges and service providers to comply.

Core Differences

Purpose: China pursues financial sovereignty and stability, viewing cryptocurrencies as a threat; the US seeks a balance between financial innovation and risk control. Path: China adopts a "one-size-fits-all" ban strategy; the US seeks a path between encouraging technological development and curbing illicit activities.

Summary

China's policy on cryptocurrencies is "prohibition," while the US explores a balance between "management" and "utilization," with their policy orientations diametrically opposed.

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