Why Beijing calls blockchain “strategic” infrastructure
In an October 2019 speech, President Xi urged accelerated blockchain R&D and real-world deployment for the digital economy and governance. That endorsement moved blockchain from niche to national priority.
Key implication: in China, blockchain is framed as a state-aligned “top-level system” for data trust and coordination across government and industry, not as a pathway to private cryptocurrencies.
The ground rules: pro-blockchain, anti-crypto
China’s 2019 Administrative Regulations on Blockchain Information Services require providers to register with the Cyberspace Administration of China (CAC), verify user identities, and keep content and activity logs. Updates keep arriving: CAC keeps publishing new batches of registered services through 2024–2025.
At the same time, the PBOC’s September 24, 2021 notice—amplified by State Council channels and international press—declared all crypto transactions illegal and completed the nationwide ban on trading and mining. This policy stance still defines the market.
What this means for builders: focus on permissioned chains, enterprise platforms, and compliant public-chain variants that remove crypto tokens.
BSN: the backbone for compliant blockchain apps
The Blockchain-based Service Network (BSN) is a state-backed cloud and middleware layer that standardizes access to multiple frameworks with unified gateways and SDKs. Originally launched in 2020, it offers “city nodes” across China and a separate international track. Independent explainers and BSN’s own materials describe it as a one-stop platform for deploying compliant DLT apps.
By mid-2020s, analyses note 100+ public city nodes in China and a growing international “Spartan” network that runs non-cryptocurrency public chains. Spartan’s governance is handled by a Hong Kong/Singapore-based foundation and supported by infra firms.
NFTs without crypto? BSN’s Distributed Digital Certificate (BSN-DDC) lets firms mint NFT-like assets with fees paid in fiat, aligning with onshore rules.
Digital yuan and cross-border rails
The PBOC’s e-CNY is China’s central bank digital currency. Its 2021 white paper explains design and policy goals, and pilots have expanded through 2024. For cross-border wholesale payments, Project mBridge—co-led with HKMA, Thailand, UAE and joined by Saudi Arabia—reached an MVP stage in 2024 and continues without BIS day-to-day involvement. Earlier pilots settled real-value transactions among commercial banks.
Takeaway: domestic retail e-CNY progresses inside China’s payments stack, while mBridge explores CBDC-based, jurisdiction-compliant settlement corridors.
Real-name identity on chain: RealDID and 2025 internet IDs
China’s broader “real-name” internet rules now have a blockchain-enabled complement. In July 2025, measures took effect to launch a centralized internet ID system that issues tokens and certificates so users can authenticate without repeatedly exposing full personal data, while remaining tied to government identity records. Reporting links it to prior BSN/RealDID efforts.
Practical effect: expect wider use of blockchain-based credentials in public services and platforms, with strong compliance controls.
Where blockchain is actually used in China
Government services and courts
Internet courts and the judicial system have piloted blockchain for evidence preservation and document verification, with national-scale verification for e-documents reported in 2023.
Trade finance and supply chains
PBOC-linked pilots in the Greater Bay Area used blockchain to streamline SME trade finance and FX settlement across participating banks.
Enterprise data-sharing and tokenization
Within BSN/Spartan and other permissioned environments, firms experiment with traceability, copyright, and “digital collectibles” without crypto.
How China standardizes the stack
Regulators and standards bodies have issued blockchain reference architectures and security frameworks to guide deployments. Coverage in 2024 highlighted national standards intended to align industry implementations with policy goals.
Bottom line: interoperability and governance are being defined from the top down, with real-name and content responsibilities sitting on service providers per CAC rules.
Mainland China vs Hong Kong: one country, different regimes
Mainland China bans private crypto trading, but Hong Kong runs a licensing regime for centralized virtual-asset trading platforms under the SFC. By 2025, SFC lists show multiple licensed platforms and active supervision. This arrangement often positions Hong Kong as a regional hub while the mainland focuses on permissioned blockchain and CBDC projects.
Opportunities and constraints for 2025
What works well
Enterprise data integrity, provenance, multi-party workflows, and identity credentials on compliant networks—especially via BSN and sector-specific platforms.
Watch-outs
No onshore crypto tokens; strict record-keeping, content moderation, and real-name checks under CAC rules; and privacy trade-offs with the 2025 centralized internet ID system.
Where this goes next
More government service integration, broader e-CNY pilots, and cross-border CBDC experiments via mBridge corridors linked to trade.
FAQs
Is it legal to buy or trade crypto in mainland China?
No. As of Sept 24, 2021, all crypto transactions are illegal; banks and platforms may not provide related services.
If crypto is banned, why is blockchain growing?
Beijing separates token speculation from the underlying tech. It mandates registration, real-name, and logging for blockchain information services while funding infrastructure like BSN and the e-CNY.
What is BSN-DDC?
A BSN module for “distributed digital certificates”—NFT-like assets with fees paid in fiat and without public-chain cryptocurrencies.
What changed in 2025 on identity?
China implemented a centralized internet ID system to support real-name online authentication while reducing the need to share full personal data with every site.
How does Hong Kong fit into the picture?
Hong Kong licenses exchanges and experiments with tokenization under SFC oversight, while the mainland emphasizes permissioned chains and CBDC pilots.
