Who says  that? the regulation ONLY refers to centralized game currencys issued by game companies. Not a single mention of Bitcoin or any other decentralized digital commodity...

"The rules also provide, for the first time, a definition of virtual currency in China (in Chinese here): It includes prepaid game cards, game currencies and game points, while tools and weapons used to play games online are not included."

"Virtual currency is to be used only to purchase other goods or services from the company that issued the virtual money[...]"