Coindesk recently published an opinion article challenging the common narrative that cryptocurrency is completely banned in China. Despite significant regulatory crackdowns, crypto trading remains vibrant in the country. For instance, Binance reportedly handled $90 billion in Chinese crypto trade in just one month last year, positioning China as a major player in the global crypto market.

The article points out that while Western media frequently reports on China's crypto "ban," insiders and legal interpretations within China tell a different story. According to Chinese industry insiders and legal articles, holding and trading crypto is not illegal for individuals in China, though such activities lack legal protection. This nuanced understanding contradicts the blanket ban narrative.

Chinese regulations have indeed targeted the crypto industry, imposing restrictions on financial institutions' involvement with Bitcoin in 2013 and banning ICOs and virtual currency exchanges in 2017. Despite these measures, trading has continued, albeit in a more discreet and cautious manner. The 2021 crackdown further restricted crypto activities, but still left gaps that do not explicitly prohibit individuals from holding or engaging in peer-to-peer crypto trading.

The resilience of crypto trade in China can be attributed to the decentralized nature of cryptocurrencies like Bitcoin, making it challenging for government control to be fully effective. Moreover, the enforcement of these regulations and the creative ways Chinese traders navigate them suggest that the government's intention might not be to completely eliminate crypto but to control its spread among the general population.

The article also highlights Hong Kong's role in China's crypto landscape. As part of the "one country, two systems" arrangement, Hong Kong has taken steps to establish itself as a digital asset hub, potentially with Beijing's tacit approval. This strategy allows China to maintain a presence in the crypto space while managing the associated risks.

Referring to China's policy as a total ban on crypto oversimplifies the complex regulatory and trading environment in the country. While China has imposed significant barriers to crypto trading and usage, the government's approach leaves room for maneuvering within the regulatory framework, reflecting a more nuanced stance towards digital currencies.