Supreme People’s Court to draft judicial standards for virtual currency and AI cases
China’s Supreme People’s Court plans to study and formulate judicial interpretation rules for virtual currency, cross-border finance, and artificial intelligence disputes, Liu Guixiang, a Judicial Committee member of the court, announced on May 27, 2026.
“We will conduct in-depth research on the adjudication rules for new cases such as virtual currencies and cross-border finance, formulate judicial interpretations on civil compensation involving insider trading and market manipulation as soon as possible,” Liu said at a press conference.
The move signals the court’s intent to establish clearer internal standards for how judges should decide disputes and determine liability in crypto and AI-related lawsuits. The guidelines may improve consistency across China’s courts as the number of crypto and AI-linked cases grows.
The court’s study covers three domains: virtual currency adjudication, cross-border finance rules, and artificial intelligence cases. On the AI front, the court plans to study judicial protection rules for data property rights, including disputes involving data ownership, data transactions, and AI-generated content.
The announcement comes as China maintains its blanket prohibition on crypto activity. In September 2021, ten Chinese agencies issued a ban on all crypto transactions, mining, and initial coin offerings. The People’s Bank of China (PBOC) reinforced restrictions in February 2026 by banning the issuance of unauthorized offshore Chinese yuan-pegged stablecoins and unapproved tokenized real-world assets.
The PBOC’s regulatory posture dates further back. In December 2013, the central bank banned financial institutions from offering Bitcoin-related services, establishing the foundation for China’s later comprehensive prohibitions.
Recent enforcement actions underscore the stakes. In October 2025, the US Department of Justice seized approximately $15 billion in Bitcoin from suspected operations linked to Chen Zhi, founder and chairman of Cambodia’s Prince Group. Chen was arrested in Cambodia on January 6, 2026.
The Supreme People’s Court’s initiative to draft judicial interpretations addresses a practical problem: as crypto and AI disputes land in Chinese courts, judges lack uniform standards for adjudication. The new rules may clarify how courts should handle civil compensation cases involving insider trading and market manipulation, areas where crypto markets have historically generated litigation.
Liu did not specify a timeline for completing the study or releasing the judicial interpretations. The court has not disclosed which specific adjudication rules or standards it is considering, nor has it clarified whether these rules will apply only to domestic cases or cross-border disputes.
The PBOC has pursued a parallel regulatory track. In addition to transaction bans, the central bank has approved commercial banks to share interest with clients holding China’s digital yuan (CBDC), a state-controlled alternative to decentralized crypto assets.
China’s approach reflects a dual strategy: maintain an absolute ban on decentralized crypto activity while developing legal frameworks to adjudicate disputes that inevitably arise. The Supreme People’s Court’s work on judicial interpretations may clarify how Chinese courts will handle crypto-related claims even as the underlying assets remain prohibited for transaction and use within the country.
