China’s 2017 Crypto Ban: 8 Years Later, The Shockwave That Still Shapes Global Markets

Today marks the 8th anniversary of one of the most pivotal turning points in crypto history — the day China abruptly pulled the plug on Initial Coin Offerings (ICOs) and ordered the shutdown of all domestic cryptocurrency exchanges. What began as a sweeping crackdown to curb financial fraud sent shockwaves across the global market, setting the stage for how governments would regulate digital assets in the years to come.

The move was an extreme measure aimed at stopping unauthorized fundraising schemes that Beijing classified as illegal public financing, often tied to pyramid schemes and fraud.

The announcement triggered an immediate sell-off, with Bitcoin and Ethereum prices tumbling as investors rushed to pull funds and exchanges scrambled to comply. While many platforms relocated to more crypto-friendly hubs like Hong Kong and Singapore, the short-term chaos highlighted just how fragile the global crypto market was at the time.

Interestingly, Beijing did not criminalize the holding or trading of crypto itself. Bitcoin was instead categorized as a “virtual commodity,” a legal gray area that has left room for selective reinterpretation ever since.

This crackdown became one of the first major state-level interventions in crypto, sparking global price volatility and setting a regulatory precedent that still resonates today. While China chose a hardline stance, other nations went down different paths.

For instance, Singapore established a clearer legal framework for token issuance and digital asset trading, opting for regulation over prohibition — a contrast that has made it one of Asia’s most attractive crypto hubs.

Fast forward to 2025, and China’s position is less straightforward. While crypto trading remains largely banned on the mainland, Beijing has used Hong Kong as a “regulatory sandbox” to cautiously test digital asset frameworks. At the same time, Chinese state-owned firms have begun experimenting with blockchain infrastructure.

Just recently, Futian Investment Holding — a state-owned company — issued the world’s first public real-world asset bond on Ethereum, signaling China’s willingness to embrace blockchain technology even as it restricts open crypto markets.

Meanwhile, Bitcoin remains the cornerstone of global markets. As of today, BTC holds a market cap of $2.21 trillion, with 19.91 million coins in circulation.

Prices rose 0.09% in the past 24 hours, despite a modest 1.82% weekly dip, and are up 7.47% over the past 90 days — highlighting both resilience and recovery amid ongoing regulatory headwinds.