China’s Supreme People’s Court plans to standardize the adjudication of digital economy disputes, rolling out new research and forthcoming interpretations on civil compensation in cases involving insider trading and market manipulation tied to cryptocurrency, as part of broader AI and data-rights governance.

Officials aim to produce clearer internal standards that align crypto and AI disputes with evolving technology, reducing ambiguity as related cases rise.

The court is also crafting judicial protection rules for artificial intelligence cases and data property rights, covering data ownership, data transactions, and AI-generated content, to improve consistency across crypto, AI IP, and liability lawsuits.

Regulatory momentum is framed as part of a broader government strategy to bolster digital economy growth through structured AI governance, even as specific policy details remain sparse.

Hong Kong is advancing the crypto industry with stablecoin licenses and proposals for advisory and management services, signaling a more proactive regulatory posture compared with the mainland.

Global cross-border enforcement actions underscore heightened scrutiny of crypto activities and the international dimension of crypto risk.

China’s AI rights policy remains more accommodating than the West, recognizing copyright for AI-generated content when human contribution is evident, aligning with the 15th Five-Year Plan to strengthen IP for emerging tech.

This stance contrasts with many Western jurisdictions where AI-generated works lack copyright, underscoring China’s approach to human-involved AI outputs within its IP framework.

Market participants must navigate a regulatory split: stringent mainland restrictions juxtaposed with proactive Hong Kong regulation that shapes regional crypto activity and cross-border capital flows.

Mainland China maintains a broad crypto ban, while Hong Kong promotes its licensing framework and has issued licenses for stablecoins used by institutions like HSBC and AnchorPoint Financial.

China seeks to build a robust regulatory environment for AI to spur innovation while addressing governance and legal considerations in deployment across sectors.

A State Council briefing on May 27 outlined comprehensive oversight for financial, AI, cybersecurity, and digital economy regulation through 2030, with participation from multiple ministries.