BEIJING – The Chinese government has issued a sweeping ban on cryptocurrency assets. In addition to previous prohibitions on trading and mining activities, China has now officially outlawed private ownership of digital currencies such as Bitcoin.

This latest move was reported by global crypto exchange Binance and is seen as a significant escalation of China’s stringent policies toward the digital asset industry.

Authorities have justified the ban as part of efforts to strengthen control over national financial flows and accelerate the adoption of the country’s official digital currency, the digital yuan or Central Bank Digital Currency (CBDC), according to Financial Express on Tuesday (3/6).

“This ban underscores Beijing’s strong commitment to centralising financial control and reducing reliance on decentralised digital assets,” Binance stated in a report published on its official channel (3/6).

The impact of the announcement was immediately felt in global markets. Bitcoin prices plunged sharply within hours of the news, while altcoins—particularly vulnerable to regulatory shifts—experienced even more volatile swings.

Nonetheless, some analysts believe the short-term effects may quickly reverse.

According to the same report, despite the ban coming from one of the world’s largest crypto markets, many seasoned investors see this as a strategic entry point amid depressed prices. They argue that regulatory-driven corrections are often temporary.

On the other hand, the move could also accelerate further decentralisation of the crypto ecosystem, especially within Asia.

Countries with more crypto-friendly policies may emerge as alternative destinations for industry players relocating from China.

Globally, the divergence in regulatory approaches to digital assets continues to widen. (EF/ZH)