Recent developments suggest that China may be reconsidering its strict ban on cryptocurrency trading, despite maintaining it since September 2021.

The surge in interest in Bitcoin within China, evidenced by increased search trends on platforms like Weibo and WeChat, has sparked speculation about a potential policy shift.

However, China's Economic Daily has reiterated warnings against Bitcoin and related products, emphasising the country's ongoing prohibition of such transactions.

Despite these restrictions, Chinese investors remain attracted to cryptocurrencies, especially given Bitcoin's remarkable 58% year-to-date rally.

The underground crypto market in China has shown resilience, with an estimated transaction volume of $86.4 billion between July 2022 and June 2023, utilising techniques such as grey-market dealers and leveraging Hong Kong's regulatory framework for digital asset transactions.