China’s Top Court to Set Rules for Virtual Currency Legal Disputes

Highlights:

• China’s top court will study clearer rules for virtual currency-related legal disputes.
• The move focuses on legal clarity, not reopening crypto trading or changing China’s strict policy.
• Courts also aim to protect investors, punish financial crimes, and support the digital economy.

China’s Supreme People’s Court will study judgment rules for virtual currency cases as the country works to improve its legal system for new financial disputes. The announcement came on Wednesday during a briefing in Beijing on China’s rule of law progress for the 15th Five-Year Plan period. Senior officials from the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Public Security, and other key agencies attended the press conference.

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Liu Guixiang, a senior official at the Supreme People’s Court, said courts will continue to support lawful financial innovation. However, they will also take firm action against financial crimes and protect market order. He added that the court will study how judges should handle new types of cases, including virtual currency and cross-border finance disputes. This could help courts deal with similar cases in a more consistent and fair way.

This does not imply that China is reconsidering its crypto regulation strategy. Rather, the court seems to be concentrating on litigation issues regarding virtual money. This may be about fraud, ownership claims, loss from investment, illegal funding, money laundering, or money recovery.

Crypto litigation cases may be challenging for courts due to their fast-paced nature and jurisdictional implications. Guidelines will make it easier for judges to come up with fair decisions in such matters.

JUST IN: 🇨🇳 China’s Supreme Court to study new judicial rules for crypto amid rising crypto-related cases. pic.twitter.com/j1ooWSLugc

— CGAA 👑 (@CGAPromotes) May 27, 2026

China Courts Push Stronger Protection for Investors and Digital Markets

Liu said courts will continue to punish financial crimes and protect financial security. He also mentioned work on civil compensation rules for insider trading and market manipulation. The court said it will protect the legal rights of small and medium-sized investors and support the stable operation of capital markets.

The Supreme People’s Court also plans to improve legal support for the digital economy. Officials mentioned cases involving artificial intelligence, data ownership, and data trading. These areas are becoming more important as technology creates new business models and new legal risks.

Authorities Step Up Action Against Crypto-Linked Crime

Chinese authorities have continued to combat illegal activities tied to virtual currencies. On February 6, eight Chinese authorities, including the People’s Bank of China and the Ministry of Public Security, issued a notice on preventing and handling risks related to virtual currencies.

The notice reaffirmed that virtual currencies do not have the same legal status as fiat currency and that related business activities remain illegal financial activities in China. It also addressed stablecoins and real-world asset tokenization under stricter regulatory scrutiny.

Cross-border law enforcement actions have been intensified. The police from China, the United States, and the UAE busted nine telecom fraud rings in Dubai and apprehended 276 suspects in mid-May. Most of these scams involved cryptocurrency fraud.

China, US and UAE Conduct First Joint Crackdown on Crypto Romance Scams in Dubai

According to Xinhua News Agency, police from China, the United States, and the UAE recently conducted their first joint law enforcement operation targeting telecom and online fraud syndicates in… pic.twitter.com/u0SxVRBoUc

— Wu Blockchain (@WuBlockchain) May 17, 2026

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