Mainland China has consistently maintained strict regulatory policies regarding virtual currencies, and these policies have continued to tighten in recent years. According to notices issued by multiple departments, including the People's Bank of China (PBOC), virtual currencies do not have the same legal status as fiat currency and should not and cannot circulate or be used as currency in the market.Within Mainland China, any business activity related to virtual currencies is deemed an illegal financial activity, including but not limited to the exchange of fiat currency for virtual currency, the exchange of one virtual currency for another, the trading of virtual currencies as a central counterparty, the provision of information intermediary and pricing services for virtual currency transactions, token issuance financing, and the trading of virtual currency-related financial products.
Virtual Currency Regulatory Policies in Mainland China
- Clear Legal Status: Virtual currencies such as Bitcoin, Ether, and USDT have been explicitly stated to lack legal tender status and should not be used as currency in circulation.
- Comprehensive Ban on Trading: Mainland China has imposed a comprehensive ban on virtual currency trading and speculation, including services provided by overseas virtual currency exchanges to residents within China via the internet.
- Illegal Financial Activities: Conducting virtual currency-related business activities within China is deemed an illegal financial activity and may constitute offenses such as the illegal issuance of tokens or securities, unauthorized public offering of securities, illegal operation of securities and futures businesses, and illegal fundraising.
- Ban on “Mining” Activities: The National Development and Reform Commission, in conjunction with relevant departments, strictly regulates virtual currency “mining” activities, completely prohibits new “mining” projects, and continues to advance the rectification of existing projects.
- Stablecoin Regulation: Without the approval of relevant authorities, no entity or individual, whether domestic or overseas, may issue RMB-pegged stablecoins outside China.
- RWA Business: In February 2026, eight ministries and commissions—including the People's Bank of China (PBOC)—issued new regulations that continued the mainland’s strict crackdown on virtual currencies but conditionally permitted the tokenization of real-world assets (RWA) overseas. However, this applies only to overseas operations; virtual currency and RWA businesses within the mainland remain prohibited.
No Legal Virtual Currency Trading Platforms Within Mainland China
Given the strict regulatory policies described above, there are no legal virtual currency trading platforms within mainland China. Former Chinese exchanges (such as HTX, OKCoin, and BTCC) have long since relocated overseas or shut down. Any virtual currency trading platform claiming to operate legally within mainland China may pose risks.
Risks for Individual Users Engaging in Virtual Currency Trading in Mainland China
Although the mere holding of virtual currencies by individuals is not illegal in itself, any activities involving trading, exchanging, or using virtual currencies to engage in illegal activities (such as money laundering or fraud) are illegal. Users in mainland China who attempt to trade virtual currencies through overseas platforms may face the following risks:
- Legal Risks: Participating in cryptocurrency trading may expose users to legal risks; in severe cases, criminal liability may be incurred.
- Account Freeze Risk: Payment platforms such as Alipay and WeChat Pay explicitly prohibit cryptocurrency-related transactions and monitor suspicious activity; user accounts may be frozen at any time due to their status as “mainland users.”
- Fund Security Risks: Keeping large amounts of funds on exchanges for extended periods carries risks; it is recommended to transfer the majority of assets to a secure personal cold wallet.
- Privacy Protection: Accessing overseas exchanges typically requires using a VPN to change your IP address in order to protect your online privacy.
Possible Workarounds for Mainland China Users (Unofficial and Risky)
Despite strict regulations, some Mainland China users still engage in cryptocurrency trading through unofficial “workarounds,” though this carries extremely high legal and financial risks. These methods typically include:
- Using Overseas Exchanges: Some users choose overseas exchanges such as Binance (Binance) or OKX (OKX). However, accessing these platforms requires a VPN, and registration and identity verification (KYC) may require the provision of Chinese identification documents.
- P2P Trading: Purchasing stablecoins such as USDT with RMB through P2P (peer-to-peer) trading markets, then exchanging the USDT for Bitcoin or other cryptocurrencies. This method typically involves Alipay, WeChat Pay, or bank transfers; however, these payment methods are expressly prohibited for cryptocurrency-related transactions.
Important Note: All of the above methods carry significant legal and financial risks, are not recognized by authorities in mainland China, and may result in account freezing or legal prosecution. Users should fully understand and assume all potential risks on their own.
