The History of the Closure of the Mainland China Bitcoin Trading Platform
Since 2013, Mainland China has gradually tightened its regulatory stance on virtual currencies, ultimately leading to the complete shutdown of the Bitcoin trading platform within the country.
- Early Regulation (2013): In December 2013, the People's Bank of China (PBOC) and other ministries and commissions issued a notice defining Bitcoin as virtual commodities and prohibiting financial institutions and payment service providers from conducting Bitcoin-related business, laying the groundwork for subsequent comprehensive regulation.
- Comprehensive Ban (2017): In September 2017, the Chinese government imposed a comprehensive ban on Initial Coin Offerings (ICOs) and required domestic Bitcoin trading platforms to shut down within a specified timeframe.At that time, major platforms such as Bitcoin China (BTCChina), HTX, and OKCoin successively announced the suspension of all digital asset trading services against the Chinese yuan, marking the official end of the era of on-exchange Bitcoin trading within China.
- Escalation of the Ban (2021): 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,” explicitly stating that virtual currency-related business activities constitute illegal financial activities and are strictly prohibited throughout the country.This includes the exchange of fiat currency for virtual currency, the exchange of one virtual currency for another, the trading of virtual currency as a central counterparty, and the provision of information intermediary and pricing services. The notice also clarified that services provided by overseas virtual currency exchanges to residents within China via the internet are likewise considered illegal financial activities.
- Continued Strengthening of Regulation (2025–2026): Entering 2025, regulatory enforcement in mainland China continued to intensify. Reports indicated that regulatory authorities further emphasized restrictions on cryptocurrency trading activities, including those involving Bitcoin.In November 2025, the People's Bank of China (PBOC) reaffirmed its regulatory stance of a comprehensive ban on virtual currencies and, for the first time at the level of a formal meeting, addressed the risks associated with stablecoins (such as USDT and USDC), noting that they often fail to meet anti-money laundering (AML) and know-your-customer (KYC) requirements and are susceptible to being used for cross-border fund transfers, money laundering, and fraud.As of February 2026, eight government agencies—including the People's Bank of China (PBOC)—jointly issued another notice, explicitly designating virtual currency-related business activities as illegal financial activities strictly prohibited within China, and for the first time bringing the tokenization of real-world assets (RWAs) under regulatory oversight.
The Chinese government’s primary reasons for adopting these measures include preventing financial risks, curbing illegal fundraising and criminal activities such as money laundering, stemming capital flight, and reducing the energy consumption associated with cryptocurrency mining.These policies have had a profound impact on the market, prompting some trading to shift to over-the-counter (OTC) transactions and overseas platforms, while also accelerating the rollout of the digital yuan.
Current Status of USDT Trading Platforms
Although virtual currency trading is strictly prohibited in mainland China, USDT (USDT)—as the leading stablecoin in terms of market capitalization and liquidity—remains one of the most important mediums of exchange in the global cryptocurrency market.
- USDT’s Market Position: USDT is the largest U.S. dollar-pegged stablecoin by market capitalization and is widely used in cryptocurrency trading pairs, providing stability through its peg to the U.S. dollar.As of 2025, USDT’s market capitalization had climbed to approximately $148 billion. Although the total global supply of stablecoins contracted for the first time in the second quarter of 2026, USDT still maintained modest growth, demonstrating its strong market resilience.
- Major International Trading Platforms: All major global cryptocurrency exchanges support USDT trading. These platforms typically offer USDT spot trading, derivatives trading, and C2C (customer-to-customer) trading services.
- Binance (Binance) and OKX (OKX): As leading global trading platforms, they are considered major hubs for USDT trading, offering C2C trading and enabling users to purchase USDT via various fiat deposit methods, such as bank cards, Alipay, and WeChat Pay.
- Bybit, Gate.io, MEXC, HTX (formerly HTX), and BingX: These platforms also offer a wide range of USDT trading services, including spot, derivatives, futures, and copy trading, to meet the needs of different users.
- Other internationally renowned platforms, such as Coinbase, Kraken, Crypto.com, KuCoin, and Bitget, also widely support USDT trading.
- Decentralized Exchanges and Wallet Apps: In addition to centralized exchanges, some decentralized exchanges (DEXs) also offer peer-to-peer USDT trading, and certain Web3 wallet apps (such as MetaMask) allow users to purchase USDT directly via various payment methods, including debit cards, credit cards, and bank transfers.However, these channels may also face regulatory restrictions in the future.
- Response by Mainland Chinese Users: Faced with strict regulations in mainland China, some users resort to technical workarounds to access international trading platforms or turn to decentralized exchanges and peer-to-peer trading networks to acquire and trade USDT. However, these activities are still considered illegal financial activities in mainland China and carry significant legal and operational risks.
Chinese regulators are paying increasing attention to stablecoins, viewing them as potential tools for cross-border fund transfers, money laundering, and fraud; regulation of stablecoins is likely to tighten further in the future.
