China’s top ten legal virtual currencies in 2025

China's stance towards cryptocurrencies is changing, with a focus on blockchain technology and exploration of CBDCs, recognizing the potential for virtual currencies to gain traction based on factors such as technological capabilities, regulatory compliance, and market adoption.

Feb 08, 2025 at 07:07 pm

Key Points:

• China's regulatory landscape for cryptocurrencies has evolved significantly since the country's initial ban on initial coin offerings (ICOs) in 2017.
• Despite the ban on ICOs, China has taken a more tolerant approach to blockchain technology and has been actively exploring the development of central bank digital currencies (CBDCs).
• In 2021, China's central bank launched the Digital Currency Electronic Payment (DCEP) project, a retail CBDC that is currently being piloted in several major cities.
• In terms of legal virtual currencies, China has not released an official list of approved or recognized coins. However, it is possible to speculate on which cryptocurrencies are likely to gain traction in the country based on factors such as their technological capabilities, regulatory compliance, and market adoption.
• This article will discuss the factors that will influence the legality and adoption of virtual currencies in China and provide a list of ten potential legal virtual currencies in the country by 2025.

Factors Influencing the Legality and Adoption of Virtual Currencies in China:

1. Regulatory Environment: The regulatory environment in China is a key factor that will influence the legality and adoption of virtual currencies. The Chinese government has been cautious in its approach to cryptocurrencies, but it has also been supportive of blockchain technology. In 2021, the Chinese central bank issued a notice clarifying that virtual currencies are not legal tender in China, but they can be used as investment vehicles. This notice suggests that the Chinese government is taking a more tolerant approach to cryptocurrencies and that it is possible that regulations will become more favorable in the future.
2. Technological Capabilities: The technological capabilities of virtual currencies are also an important factor that will influence their legality and adoption in China. The Chinese government is interested in developing blockchain technology for a variety of applications, including cross-border payments, supply chain management, and smart contracts. Virtual currencies that are based on advanced blockchain technology are more likely to gain traction in China.
3. Regulatory Compliance: Virtual currencies that comply with Chinese regulations are more likely to be legalized and adopted in the country. The Chinese government has been actively working to develop regulations for virtual currencies and has stated that it intends to crack down on illegal activities in the cryptocurrency market. Virtual currencies that are compliant with Chinese regulations are less likely to face regulatory challenges and are more likely to be accepted by businesses and consumers.
4. Market Adoption: The market adoption of virtual currencies is also an important factor that will influence their legality and adoption in China. Virtual currencies that are widely used by businesses and consumers are more likely to gain traction in the country. The Chinese government is more likely to legalize and adopt virtual currencies that are already being used by a significant number of people.

Ten Potential Legal Virtual Currencies in China by 2025:

1. Bitcoin (BTC): Bitcoin is the world's first and largest cryptocurrency. It is a decentralized digital currency that uses blockchain technology to facilitate secure and transparent peer-to-peer transactions. Bitcoin is currently the most widely used and accepted cryptocurrency in China, and it is likely to remain a popular choice in the country in the years to come.
2. Ethereum (ETH): Ethereum is a blockchain platform that allows developers to build and deploy decentralized applications. It is the second-largest cryptocurrency by market capitalization and is widely used for a variety of applications, including decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contracts. Ethereum is likely to gain traction in China as the country continues to explore the potential of blockchain technology.
3. Binance Coin (BNB): Binance Coin is a cryptocurrency that is issued by Binance, one of the world's largest cryptocurrency exchanges. BNB is used to pay for transaction fees on the Binance exchange and can also be used to participate in Binance's various investment and lending products. BNB is likely to gain traction in China as Binance continues to expand its operations in the country.
4. Cardano (ADA): Cardano is a blockchain platform that is focused on providing a secure and scalable platform for decentralized applications. It uses a unique consensus mechanism called Ouroboros that is designed to be more energy-efficient than the Proof-of-Work mechanism used by Bitcoin and Ethereum. Cardano is likely to gain traction in China as the country continues to explore the potential of blockchain technology.
5. Polkadot (DOT): Polkadot is a blockchain platform that allows for the interoperability of different blockchains. It is designed to make it easier for developers to build and deploy decentralized applications that can interact with each other. Polkadot is likely to gain traction in China as the country continues to explore the potential of blockchain technology.
6. TRON (TRX): TRON is a blockchain platform that is focused on providing a fast and scalable platform for decentralized applications. It uses a unique consensus mechanism called Delegated Proof-of-Stake (DPoS) that is designed to be more efficient than the Proof-of-Work mechanism used by Bitcoin and Ethereum. TRON is likely to gain traction in China as the country continues to explore the potential of blockchain technology.
7. Filecoin (FIL): Filecoin is a decentralized file storage network that allows users to store and retrieve files in a secure and reliable way. It uses a unique consensus mechanism called Proof-of-Storage (PoS) that is designed to ensure that files are stored safely and securely. Filecoin is likely to gain traction in China as the country continues to explore the potential of blockchain technology.
8. Helium Network (HNT): Helium Network is a decentralized wireless network that allows users to provide and access wireless internet connectivity. It uses a unique consensus mechanism called Proof-of-Coverage (PoC) that is designed to ensure that wireless coverage is provided in a reliable and secure way. Helium is likely to gain traction in China as the country continues to explore the potential of blockchain technology.
9. Chainlink (LINK): Chainlink is a decentralized oracle network that provides smart contracts with access to real-world data. It uses a unique consensus mechanism called Proof-of-Acknowledgement (PoA) that is designed to ensure that data is provided in a reliable and secure way. Chainlink is likely to gain traction in China as the country continues to explore the potential of blockchain technology.
10. VRF (VRF): VRF is a blockchain platform that is used to create lottery games. It is designed to be fair and transparent, and it allows players to generate random numbers without the need for a centralized authority. VRF is likely to gain traction in China as the country's lottery market grows.

FAQs:

1. What is the legal status of cryptocurrencies in China?

The regulatory environment for cryptocurrencies in China is still evolving. Virtual currencies are not legal tender in China, but they can be used as investment vehicles. The Chinese government is working to develop regulations for virtual currencies and has stated that it intends to crack down on illegal activities in the cryptocurrency market.

2. Which cryptocurrencies are legal in China?

The Chinese government has not released an official list of legal cryptocurrencies. However, it is possible to speculate on which cryptocurrencies are likely to gain traction in the country based on factors such as their technological capabilities, regulatory compliance, and market adoption.

3. What is the future of cryptocurrencies in China?