Current Status of Virtual Currency Regulation in Mainland China: A Complete Ban on Trading
In response to the question, “Which cryptocurrency platforms are currently available? Are there any legal cryptocurrency exchanges in China?”, the answer is: In Mainland China, there are currently no legal cryptocurrency trading platforms available for residents to buy or sell cryptocurrencies.
Since 2017, the Chinese government has continuously tightened its regulatory policies on virtual currencies. In September 2021, ten government departments—including the People's Bank of China (PBOC)—jointly issued the “Notice on Further Preventing and Addressing Risks Associated with Virtual Currency Trading and Speculation,” which explicitly stated that virtual currency-related business activities constitute illegal financial activities and comprehensively prohibited the following acts:
- Exchange services between fiat currency and virtual currencies.
- Exchange services between virtual currencies.
- Trading virtual currencies as a central counterparty.
- Providing information intermediary and pricing services for virtual currency transactions.
- Initial Coin Offerings (ICOs) and trading in virtual currency derivatives, among others.
The notice also emphasizes that services provided by overseas virtual currency exchanges to residents within China via the internet are likewise considered illegal financial activities, and relevant authorities will strengthen monitoring of all related activities.
Important Note: Although Chinese law does not prohibit individuals from holding virtual currencies and recognizes them as virtual property, any transactions, speculation, exchanges, or financing activities involving virtual currencies are considered illegal. Participants may face legal risks, including the freezing of funds and even criminal liability.
Major Global Virtual Currency Trading Platforms (Not Legal in Mainland China)
Globally, there are many well-known cryptocurrency trading platforms serving users in different countries and regions. However, it must be emphasized once again that due to Mainland China’s strict regulatory policies, these platforms generally do not provide direct cryptocurrency trading services to Mainland Chinese residents.The following are some mainstream platforms with high global recognition and trading volume (data is subject to change over time and is provided for reference only, as of 2024):
- Binance (Binance): As one of the world’s largest cryptocurrency exchanges, Binance offers a wide range of cryptocurrency trading pairs, derivatives, staking, and other services, and is renowned for its high liquidity and relatively low trading fees.
- OKX (OKX): Another leading global cryptocurrency trading platform, OKX offers a variety of trading products, including spot trading, contracts, and options, and is committed to building the Web3 ecosystem.
- Bybit: Known for its derivatives trading (particularly the futures market), Bybit has also expanded its spot trading services in recent years and holds a significant position in the global market.
- Coinbase: A dominant player in the U.S. market, it is favored for its user-friendly interface and high level of regulatory compliance, making it particularly suitable for novice users.
- Kraken: As one of the longest-standing cryptocurrency exchanges, Kraken is renowned for its robust security measures and extensive fiat currency support.
- KuCoin: Often referred to by some users as the “altcoin paradise,” it offers a wide variety of cryptocurrencies and is well-suited for traders seeking coins with low market capitalization.
- Gate.io: Offers a diverse selection of cryptocurrencies and innovative products, such as crypto lending and decentralized exchange services, and attracts users with low trading fees.
- Crypto.com: It offers a one-stop crypto ecosystem, including trading, payments, and lending services, and has achieved significant growth in 2024.
These platforms typically require users to complete strict Know Your Customer (KYC) verification and may restrict the scope of their services based on the laws and regulations of the user’s country or region. For residents of mainland China, even accessing overseas platforms via a VPN or similar methods may pose risks due to violations of mainland China’s regulatory requirements.
Virtual Asset Regulation in Hong Kong, China
It is worth noting that Hong Kong, China, has adopted a different regulatory approach toward virtual assets and has established a licensing system for Virtual Asset Service Providers (VASPs).Currently, there are a few legally licensed virtual currency exchanges in Hong Kong, such as OSL Exchange and HashKey Exchange, which operate under the supervision of the Hong Kong Monetary Authority and the Securities and Futures Commission, providing services to eligible investors. However, Mainland residents conducting virtual currency transactions through Hong Kong platforms must still carefully assess their compliance risks under the Mainland’s legal framework.
Compliance Recommendations and Risk Warnings
Given the strict restrictions on virtual currency trading in Mainland China, it is recommended that Mainland Chinese residents:
- Strictly comply with national laws and regulations: Avoid participating in any form of virtual currency trading or speculative activities.
- Be aware of risks: Any virtual currency trading platform claiming to be “legal” or “compliant” in mainland China may be engaging in false advertising and poses high risks such as fraud and money laundering.
- Focus on blockchain technology itself: The Chinese government encourages the development and application of blockchain technology. Investors can explore innovations and applications of blockchain technology in other fields, such as the development of the digital yuan (e-CNY).
- Legitimate Investment Channels: If you are interested in the digital economy, you may consider investing in stocks or funds of publicly listed companies with blockchain-related business models (such as MicroStrategy, which is listed on the U.S. stock market).
Please keep in mind that in the cryptocurrency sector, compliance is the top priority, and any non-compliant actions may result in serious legal and financial consequences.
