The Supreme People's Court of China recently announced that it will continue to conduct further research into regulations governing cryptocurrency-related litigation, amid a growing number of cases arising from crypto and cross-border finance. This move suggests Beijing is beginning to pay more attention to the complex legal disputes surrounding digital assets, although its stance on banning crypto trading in mainland China remains unchanged.
Speaking at a press conference in Beijing on May 27, Liu Guixiang, a senior judge and member of the Judiciary Committee of the Supreme People's Court of China, said that Chinese courts will conduct in-depth research on the rules of adjudication for emerging cases related to "virtual currencies" and cross-border financial activities.
According to observers, this statement reflects the reality that although China has strongly banned crypto trading and mining for many years, its legal system still faces an increasing number of disputes related to Bitcoin, stablecoins, real asset Tokenize (RWA), and crypto Capital outflows.
Mr. Liu also emphasized that officials will expedite the issuance of judicial guidelines related to civil compensation in insider trading and market manipulation cases. This signals that China is seeking to perfect the legal framework for digital financial markets, especially as new speculative models are increasingly emerging.
This press conference is being held within the framework of the "15th Five-Year Plan"—China's key economic and technological development strategy extending to 2030. The Chinese government is currently strongly promoting the integration of cybersecurity and data control into the entire national digital infrastructure, including the digital finance and blockchain sectors.
Notably, the Supreme People's Court of China's statement comes just months after a joint announcement in February 2026, in which the country's regulators continued to expand their campaign to crack down on crypto-related financial activities. This document not only reaffirmed the ban on cryptocurrency trading in mainland China but also expanded the scope of oversight to new areas such as real asset Tokenize (RWA) and offshore yuan- Peg stablecoins.
In reality, the legal status of crypto in China is fraught with contradictions. Despite the ban on cryptocurrency trading, many local courts have previously recognized Bitcoin and other digital assets as legally valid "virtual assets" in civil disputes concerning ownership.
However, the announcement in February clarified that crypto investment activities would not be protected by law. Chinese authorities emphasized that cryptocurrency investment transactions are XEM legally invalid and any resulting losses will be the sole responsibility of the investor.
