CWR > Volume 7(1); 2021 > Current Development
Research Paper
Published online: March 1, 2021

The Current Status of Cryptocurrency Regulation in China and Its Effect around the World

John Riley
Sogang University School of Law
35 Baekbeom-ro (Sinsu-dong), Mapo-gu, Seoul 04107 Korea.
Corresponding Author:

ⓒ Copyright YIJUN Institute of International Law. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.


There is no single approach in the world regarding the legal regulation of cryptocurrency. Most countries are wary of legalizing this payment instrument, fearing problems associated with tax evasion, terrorist financing, fraud and other illegal transactions. Nevertheless, the issue of legalization of cryptocurrencies has recently moved to a different level as the market capitalization of cryptocurrencies grew to over USD 237 billion 2020, with several leading cryptocurrencies such as Bitcoin skyrocketing in value in 2021. The explosive growth has been lead in no small part by China, the world’s largest and most important market for cryptocurrency in terms of mining, investing and research. This article reviews the current trends in cryptocurrency regulation with a particular focus on China, including an analysis of current cryptocurrency laws in China, as well as the new Chinese Cryptography Law. Also, it explains recent developments in Chinese regulation and policy will continue to shape the development of the global cryptocurrency markets.

Keywords : Cryptocurrency Regulation, Chinese Digital Currency, Digital Yuan, China’s Cryptography Law, Bitcoin

View the Full Text