Crypto landscapes in China and Hong Kong

Abstract

This paper examines the legal and regulatory treatment of crypto-assets in China and Hong Kong, challenging the common perception of a strict ban in China and a permissive regime in Hong Kong. While the two jurisdictions adopt different approaches, both reject the decentralised ethos of crypto-assets and prioritise financial stability, monetary sovereignty and state control. In China, a complex framework of administrative notices—particularly those issued in 2021 and 2026—effectively prohibits most crypto-related activities while leaving limited space for private ownership. The legal status of crypto-assets remains inconsistent, especially across contract, property and criminal law. At the same time, China is promoting its central bank digital currency, the e-CNY, as a state-controlled alternative. In contrast, Hong Kong recognises crypto-assets as property and regulates them through existing financial frameworks under a technology-neutral approach. Its dual-licensing regime and stablecoin regulations provide greater clarity but remain cautious and highly centralised. Despite their differences, both jurisdictions ultimately subordinate crypto innovation to regulatory control and broader policy objectives.