China has enacted a comprehensive ban on cryptocurrency activities, effectively ending the country’s prominent role in the global crypto market. The shift now focuses on promoting the digital yuan, China’s national digital currency, as the main driver of its financial system. This move impacts global markets by triggering talent migration from China to more permissive jurisdictions like Singapore and Hong Kong. The recent ban has resulted in a decrease in Bitcoin and Ethereum prices, while digital yuan-aligned assets have experienced limited growth internationally. This shift marks a significant change for the country’s economic landscape, with Shanghai, once a major crypto hub, facing economic repercussions from strict regulations that have slowed its global crypto standing since 2025. Experts predict the impact of these actions will drive innovation in new global financial hubs.