The Guangzhou Internet Court presented a new report on the legal protection of virtual property, categorizing it into reality-mapped and network-constructed assets. These definitions reflect China’s current stance on cryptocurrencies.
Distinctions in Virtual Asset Categories
During the April 26 briefing, the Guangzhou Internet Court made explicit distinctions between reality-mapped and network-constructed virtual assets.
These definitions affect the legal position on digital assets, emphasizing that investment activities undermining legal tender are not protected.
The report reaffirmed that crypto activities, including Bitcoin and Ethereum trading, fall outside judicial protection.
Legal Implications for the Crypto Market
The findings from this briefing reflect the continuity of China’s restrictive approach to cryptocurrencies. Market participants have anticipated such positions, minimizing the likelihood of disruptive market effects.
Currently, trading unauthorized digital assets remains outside legal protection.
Long-Term Trends in Chinese Crypto Regulation
In 2025, China's stance on unauthorized digital assets continues to echo the 2021 crypto ban, underscoring a long-standing regulatory trend.
This approach may curb speculative activities, yet it may also stifle financial innovation in the market.
In light of the analysis by the Guangzhou Internet Court, strict regulation of virtual property in China remains prevalent, relevant for both local and international crypto market participants.
