China's Supreme People's Court stresses the need to improve the laws for digital transactions and virtual assets

China’s Supreme People’s Court appears to have had enough with the uptick in cybercrimes that have become the unfortunate offshoot of the rapid development of cryptocurrencies. It is now emphasizing the need for comprehensive laws regarding digital currencies and virtual property. 

Countries around the world, including China, are adapting their laws in order to keep up with these developments, as China’s Supreme People’s Court published its “Digital Rule of Law” journal, stressing the need to improve the laws for digital transactions and virtual assets.

Does China’s Supreme Court have digital currency laws?

The Supreme People’s Court published the sixth issue of “Digital Rule of Law” for 2025, and in it, the court stressed the importance of improving the rule of law concerning digital transactions and virtual assets.

The journal was organized by the People’s Court Press and addresses major challenges in creating legal frameworks that can keep up with blockchain technology and digital currencies.

Perhaps the most important update from the publication is the commercial law reforms for digital transactions, which could technically allow Chinese citizens legal recourse in cases involving digital assets. Other areas of digital law covered in the document include online criminal procedure, data protection, artificial intelligence regulation, and copyright protection for AI-generated content.

The journal mentions creating “controllable electronic records” as a new property class in order to improve civil and commercial regulations in China.

One article discusses how the U.S. changed its commercial laws in 2022 to better handle electronic contracting, electronic currency, and virtual property based on distributed ledger technology and how these international developments could inform China’s own efforts for digital commerce laws.

Chinese courts have also applied the concepts of fairness and honesty to regulate market conduct. The newly amended Anti-Unfair Competition Law, which became effective October 15, 2025, specifically prohibits unauthorized collection or use of lawfully held data.

Does China need digital currency laws?

China currently has a complete ban on all cryptoassets and cryptoasset activities, including minting cryptocurrencies, the use and circulation of cryptocurrencies in the market as currency, public offerings, trading, and speculation. The only legal digital currency in the country is its own digital yuan issued by the People’s Bank of China.

Chinese courts have consistently recognized cryptocurrencies as virtual property with economic value that can receive protection under Chinese law. However, transactions involving virtual currencies that violate public policy are invalid. This contradiction has created a legal grey area where people can own digital assets as property, but cannot legally trade them.

The Supreme People’s Court recognized that crypto-related cases have become more frequent, so in November 2025, it stressed the need to address these new issues, including the procedure for virtual currencies involved in legal cases.

Also in November, special courts called internet courts were designated to handle disputes involving data ownership, privacy, virtual property, and unfair online competition.

In August 2024, the Supreme People’s Court and Supreme People’s Procuratorate made the first change to China’s anti-money laundering law since 2007. In the directive, it announced that “virtual asset” transactions would count as money laundering under the law.

A year later, in August 2025, the Supreme People’s Court released the 47th batch of guiding cases to set a precedent for judicial protection of data rights in China.

The six cases released were dedicated to data-related disputes. They cover recurring controversies and attempt to satisfy the interests of data owners, processors, and users.

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