China’s Supreme People’s Court has announced plans to develop new judicial rules for handling cases involving virtual currencies and cross-border finance. The court also aims to soon finalize
China’s Supreme People’s Court has announced plans to develop new judicial rules for handling cases involving virtual currencies and cross-border finance. The court also aims to soon finalize legal interpretations clarifying compensation procedures in cases of insider trading and market manipulation. These moves are intended to set clearer standards for how courts should approach emerging disputes in the digital economy.
The Supreme Court emphasized that rules covering artificial intelligence lawsuits and data ownership are also under consideration. More comprehensive legal guidance will be prepared for issues such as data ownership, data transactions, and the status of AI-generated content. The statement was made by court committee member Liu Guixiang.
The announcement highlighted a goal to increase coordination between courts in resolving liability and disputes in crypto and AI-related intellectual property cases. These initiatives are expected to streamline legal proceedings as the number of such cases rises in China.
Glossary: A pig butchering scam is a type of fraud where investors are lured into fake investment projects or crypto deals, only to lose significant amounts of money. The term highlights the severe financial losses suffered by victims.
The court’s renewed focus comes on the heels of the high-profile Chen Zhi case. Chen Zhi, a Chinese-born businessman known as the founder and chairman of Cambodia’s Prince Group, was apprehended in Cambodia on January 6, 2026 and swiftly extradited to China. The investigation into Zhi reportedly centers on large-scale fraud known as pig butchering scams. In October 2025, the US Department of Justice announced the seizure of around $15 billion worth of Bitcoin linked to operations allegedly connected to Zhi.
Liu Guixiang, a member of the Supreme People’s Court judicial committee, explained that they are working on new regulations to clarify both jurisprudence and compensation processes in cases involving virtual currencies and cross-border financial disputes.
China has taken a strict approach to cryptocurrencies for years. In 2013, the People’s Bank of China imposed its first major ban on financial institutions facilitating Bitcoin transactions, stating that Bitcoin would not be recognized as official currency. Then, in September 2021, ten government bodies—including the central bank and capital market regulators—issued a broad ban covering all crypto transactions, mining, and initial coin offerings (ICOs).
In February 2024, the central bank further prohibited the distribution of yuan-based stablecoins and all unauthorized tokenized assets issued abroad, extending its regulatory reach beyond domestic borders.
These restrictions signal China’s intent to promote its state-backed digital currency, the digital yuan (CBDC), in place of cryptocurrencies. More recently, the government has introduced regulations allowing commercial banks to distribute the digital yuan to the public and share interest earnings from digital yuan accounts.
Officials say these steps are designed to make the digital yuan the main choice for those seeking to use traditional money in digital form, while making it clear that cryptocurrencies will not enjoy similar freedoms.
Digital Yuan (CBDC)CryptocurrenciesIssuing authorityPeople’s Bank of China (PBOC)Decentralized; no central authorityLegal statusLegal, government-backedCompletely banned in ChinaUse casesDomestic commerce, public paymentsCannot be used due to prohibitionRegulatory approachState-supported, encouragedComprehensive bans and sanctionsIn summary, the Supreme People’s Court’s new legal initiative aims to clarify judicial processes related to cryptocurrencies and AI technologies in China. However, due to existing bans and strict regulatory measures, the crypto market is not expected to gain freedom in China anytime soon.
The post China to clarify crypto lawsuit rules after $15B BTC seizure appeared first on COINTURK NEWS.
