China is reportedly reconsidering its ban on Bitcoin, with potential legalization by the end of 2025, according to the latest Financial Stability Report from the People’s Bank of China (PBOC). The report suggests that the government is actively reviewing its 2021 crypto restrictions, fueling speculation about a major policy shift.
Signs Point to China Softening on Crypto
While China has not made an official decision, several recent developments suggest a softening stance toward cryptocurrency. In 2023, Hong Kong legalized crypto trading, allowing retail investors to access digital assets.
Shanghai later recognized Bitcoin, and some centralized exchanges (CEXs) now permit Chinese users to complete Know Your Customer (KYC) verification.
On top of that, the government continues to lower interest rates, showing a broader financial strategy that may include digital assets.
Related: Arthur Hayes: China’s Quantitative Easing Will Trigger a Bitcoin Price Surge
$1 Trillion Crypto Influx If China Reverses Course?
Crypto commentator Leshka estimates that over $1 trillion could enter the market if China lifts its crypto ban. This influx of capital could drive significant growth up to 100x for China-linked blockchain projects.
ONDO, a real-world asset (RWA) with $3.7 billion in market cap, is his first pick. NEO, often called the “Chinese Ethereum,” and SUI, a Layer 1 blockchain built for secure and scalable digital asset transactions, are also in his top three.
Top China Crypto Plays: ONDO, NEO, SUI, FIL, RNDR & More
Meanwhile, Filecoin (FIL), the native token of a decentralized storage network, and Render, an AI token, round up his first five.
Related: China’s View on Global Crypto Regulation: Key Takeaways
Theta Network (THETA), Alchemy Pay (ACH), Wormhole, Hyperliquidx (HYPER), and Aethir Cloud (ATH) are the other fives in his top ten list of coins that could see 100x returns.
China’s potential regulatory shift comes as global crypto adoption accelerates. The U.S. Securities and Exchange Commission (SEC) in 2024 approved multiple Bitcoin exchange-traded funds (ETFs), further legitimizing digital assets in traditional finance. If China follows suit, it could reshape the industry and drive renewed investor interest.
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