Chinese Crypto Investors Continue To Buy More Despite Recent Crackdown

By Bhushan Akolkar
Updated June 4, 2025
PBOC

Last week, in another major effort to crack down on crypto, the Chinese central bank – People’s Bank of China (PBoC) – declared crypto transactions as illegal. This move seems to have a little effect on local investors who continue to show the skin in the game.

Speaking to Bloomberg, some of the local investors said that the move rather turned out as a new opportunity to buy. Bobby Lee, the chief executive officer of crypto wallet firm Ballet Global Inc. said that crackdown hasn’t been as bad as many thought. “I have bought some when it dipped. a dark cloud is removed,” he said.

Other local crypto holders from China also shared similar views. A Shanghai-based crypto investor Stephen said: “These policies are not new to us, so we view them as a buy signal”. He further stated that he bought the Bitcoin dip through OTC counters. However, he added that new investors might find it difficult o deal with it. “People new to crypto might feel scared. Some of them will quit,” said Stephen.

Long Term Investors Find Workarounds

Chinese investors said that such moves won’t deter players who have been in the crypto game for a long time. These players usually find workarounds. As we already reported, post the China ban, crypto trading volumes on decentralized exchanges (DEXs) like dYdX and Uniswap shot up significantly.

Stephen told Bloomberg that while the Chinese government has mined trading and mining of Bitcoin and other digital assets it won’t put an outright ban on holding them since a decision is too difficult to enforce. “The government is smart,” he said. “They won’t issue a policy they cannot implement.”

While there was a knee-jerk reaction post the China ban, whales and institutional players like JPMorgan bought the Bitcoin dip.

Advertisement
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.