A court in Shanghai has announced that holding cryptocurrencies is not illegal in China.

Judge Sun Jie of the Shanghai Songjiang People’s Court provided insights through a post on the Shanghai High People’s Court’s official WeChat account.

While individual ownership of cryptocurrency is lawful, business entities are prohibited from engaging in crypto investments or token issuance freely.

This clarification arose during a case review involving a lawsuit over an initial coin offering, which is viewed as illicit financing under Chinese law.

China initially restricted initial coin offerings and closed crypto exchanges in 2017.

The crackdown intensified in 2021 with a ban on bitcoin mining and the announcement that crypto-related business operations are illegal.