China's Supreme Court is advocating for the establishment of digital asset regulations to address the increasing incidence of crypto-related cybercrimes, as reported in the 2025 Digital Rule of Law journal. Despite the existing ban on cryptocurrency trading, these digital assets are recognized as virtual property requiring legal protection. The proposed legal reforms aim to implement stricter digital transaction regulations, enhance blockchain oversight, and bolster counter-financing of terrorism (CFT) measures. The reforms suggest that virtual asset transactions could be classified as criminal offenses. Additionally, internet courts, which were established in November 2025, are now tasked with handling disputes related to virtual property and data. In a move to clarify data rights and promote fairness in the digital market, 47 guiding cases were issued in August.