An Overview of the Current Status of Virtual Currency Trading Platforms in Mainland China
Since September 2021, when ten government agencies—People's Bank of China (PBOC), and others—jointly issued a notice, Mainland China has implemented a comprehensive ban on virtual currency trading activities. This means that currently, no digital currency trading platform is operating legally within Mainland China. Any platform claiming to be “available for use domestically” may be involved in illegal activities and carries significant legal and financial risks.
The Regulatory Framework for Virtual Currencies in Mainland China
The Chinese government’s regulatory stance on virtual currencies is clear and strict, with key points including:
- A comprehensive ban on virtual currency trading activities: In September 2021, ten government agencies—including the People's Bank of China (PBOC), and others—jointly issued a notice explicitly classifying virtual currency-related business activities as illegal financial activities, which are strictly prohibited throughout the country.This covers a wide range of activities, including the exchange of fiat currency for virtual currency, the exchange of one virtual currency for another, the buying and selling of virtual currency as a central counterparty, the provision of information intermediary and pricing services, token issuance for fundraising, and the trading of virtual currency-related financial products.
- Services Provided by Overseas Platforms Are Also Prohibited: Overseas virtual currency exchanges providing services to residents within China via the internet are likewise deemed illegal financial activities. Any domestic personnel who assist these institutions in their operations or provide marketing, promotional, or technical support may be held legally accountable.
- Ongoing Crackdown and Reaffirmation of the Ban: Regulatory authorities continue to intensify their crackdown on virtual currency-related activities. For example, effective June 1, 2025, China has explicitly prohibited individuals from holding private crypto assets.In February and December 2025, the People's Bank of China (PBOC), and other agencies issued multiple joint circulars emphasizing that virtual currency-related business activities are strictly prohibited within China and warning of the risks associated with stablecoins. As of the time of publication in July 2026, the People's Bank of China (PBOC) was still holding coordination meetings to emphasize the need to prevent domestic capital from flowing into the virtual currency market.
- Promotion of the Digital Yuan: In contrast, the Chinese government is vigorously promoting its official digital currency—the Digital Yuan (e-CNY)—as a key infrastructure for the future digital economy.
Legal Definition of Individual Holding and Trading
According to relevant legal definitions, the mere possession of virtual currencies (such as Bitcoin) by individuals is not illegal in itself. However, any form of trading, speculation, or engagement in illegal activities (such as money laundering or fraud) using virtual currencies constitutes a violation of the law. This means that even virtual currency transactions between individuals may not be protected by law and may even entail legal risks.
Risks of Circumventing the Ban
Despite strict regulations in mainland China, some users still attempt to access overseas exchanges via Virtual Private Networks (VPNs) and use P2P (peer-to-peer) markets to exchange RMB for USDT and other cryptocurrencies. However, such “circumventing” activities carry extremely high risks:
- Legal Risks: Such behavior is officially deemed “unrecognized,” and may result in fines or even criminal liability. When adjudicating related cases, Chinese courts have generally ruled that cryptocurrency transactions fall outside the scope of legal protection and have even declared related civil legal acts invalid.
- Financial Risks: Overseas platforms may have compliance or security issues, exposing user funds to the risk of being frozen, stolen, or lost if the platform goes under. Major payment tools such as Alipay and WeChat Pay also explicitly prohibit cryptocurrency-related transactions and monitor suspicious activity.
- Market Volatility Risk: The virtual currency market is highly volatile, with prices influenced by multiple factors such as policy, macroeconomics, and market sentiment. For example, following the release of China’s notice in September 2021 imposing a comprehensive ban on virtual currency trading, the price of Bitcoin plummeted within a short period, and other major cryptocurrencies also experienced significant fluctuations.Investors should be fully aware of the high risks involved when viewing real-time data on market platforms such as Svmuu.
Conclusion
For residents of mainland China, participating in cryptocurrency trading poses serious legal and financial risks. Given the Chinese government’s comprehensive ban on cryptocurrency trading, investors are advised to strictly comply with local laws and regulations and avoid illegal trading activities to protect their assets.
