The Current Status of Cryptocurrency Regulation in China and Its Effect around the World

There is no single approach in the world regardingthe legal regulation of cryptocurrency. Most countries are wary of legalizing this payment instrument,fearingproblemsassociated with tax evasion, terrorist financing f raud and other illegal transactions. Nevertheless, the issue oflegalization of cryptocurrencies has recently moved to a diferent level as the market capitalization of cryptocurrencies grew to over USD 237 billion 2020, with several leading cryptocurrenciessuch as Bitcoin skyrocketing in value in 2021. The explosive growth has been lead in no smallpart by China, the world's largest and most important marketfor cryptocurrency in terms of mining, investing and research. This article reviews the current trends in cryptocurrencyregulation with a particularfocuson China, including an analysis of current cryptocurrency laws in China, as well as the new Chinese Cryptography Law. Also, it explains recent developments in Chinese regulation and policy will continue to shape the development of the global cryptocurrency markets.