Last year, the Shanghai Songjiang People’s Court ruled that Chinese citizens have the legal right to own cryptocurrencies, setting the stage for potential regulatory changes. As the new year begins, this landmark decision marks the first step in shifting China’s strict stance on digital assets. While crypto-related business activities remain restricted, recognising ownership rights signals a future where regulations may adapt to blockchain’s expanding influence. With each passing year, the prospect of a more crypto-friendly legal framework in China grows stronger, sparking optimism within the global cryptocurrency community. Will 2025 be that year?
Legal Recognition of Crypto: A Precedent in the Making?
A ruling by the Shanghai Songjiang People’s Court affirmed that cryptocurrencies like Bitcoin are legally owned assets in China, classifying them as virtual commodities with property-like rights. While crypto trading, token sales, and exchanges remain banned, this decision highlights a potential shift in China’s approach to digital asset regulation. The ruling emerged from a case involving an initial coin offering (ICO), reinforcing the government’s crackdown on crypto-related businesses to maintain financial stability.
Despite China’s strict bans on ICOs, cryptocurrency exchanges, and Bitcoin mining since 2021, courts have consistently upheld that digital assets can be legally owned. This creates a contradiction between regulatory policies and judicial rulings, suggesting that China may be managing crypto integration rather than banning it entirely.
While China does not operate under a precedent-based legal system, guiding cases from the People’s Court are increasingly shaping court rulings—similar to trends in other civil law jurisdictions. As more courts interpret crypto ownership under Chinese property law, this could influence future regulations and gradually open the door to a more structured and crypto-friendly legal framework.
A Step Toward Future Policy Shifts?
While this ruling did not alter China’s crypto ban, it reinforced a key legal principle: cryptocurrencies are recognised as personal property. This legal stance could lay the groundwork for future regulatory shifts, potentially opening the door to controlled crypto activities within China.
By acknowledging Bitcoin and digital assets as private property without outright dismissing their value, China may be signalling a long-term strategy—one focused on regulating rather than eliminating the influence of cryptocurrencies. If China’s crypto regulations evolve to permit limited, state-controlled crypto adoption, this could have a major impact on global crypto markets, influencing Bitcoin adoption, blockchain innovation, and regulatory trends worldwide.
What It Could Mean for the Crypto Community?
If China eventually softens its crypto restrictions, even slightly, the impact on the global market could be profound. Before the bans, China was a dominant force in crypto trading and mining, with a vast user base driving liquidity and innovation. Given China’s 1.4 billion population, even a partial reopening could spark massive adoption, injecting new liquidity, demand, and legitimacy into the space.
For now, the Shanghai court’s ruling stands as a key legal precedent, demonstrating that despite regulatory crackdowns, digital asset ownership remains protected under Chinese law. This could be the first step toward a more strategic approach to crypto integration, where China seeks to control, rather than completely exclude, blockchain-based assets—a move that could reshape global crypto dynamics.
In 2025, the Chinese year of the snake, crypto may finally sink its fangs into China’s rigid financial framework, injecting it with the unstoppable force of decentralisation. Just like the snake—silent, strategic, and unyielding—the crypto revolution continues to advance, refusing to be tamed. As legal interpretations evolve and cracks appear in past restrictions, China may find itself unable to ignore the transformative power of digital assets. If the tide turns, 2025 could be the year crypto sheds the skin of suppression and emerges stronger than ever.
Stay informed,
Rodcas Consulting Group