The Current State of Virtual Currency Trading Platforms in Mainland China: No “Legitimate” Platforms
Since 2021, regulatory policies on virtual currencies in Mainland China have continued to tighten, and virtual currency trading and related business activities have been completely banned. This means that within Mainland China, there are no “legitimate” virtual currency trading platforms that are officially recognized or operating legally.
Mainland China’s Strict Regulatory Policies
People's Bank of China (PBOC) In September 2021, ten government departments issued a notice explicitly classifying virtual currency-related business activities as illegal financial activities. The notice specifically stated that services provided by overseas virtual currency exchanges to residents within China via the internet also constitute illegal financial activities, and that relevant individuals will be held accountable.
As 2026 began, regulatory enforcement was further intensified. On February 6, 2026, eight government agencies—including the People's Bank of China (PBOC)—jointly issued the “Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Matters” (“Document No. 42”). This document reaffirmed the domestic ban on virtual currencies and emphasized that all related business activities are strictly prohibited.In addition, the new regulations introduced a provision stipulating that, without approval, domestic entities and the overseas entities they control may not issue virtual currencies overseas, and that overseas entities and individuals are prohibited from illegally providing virtual currency-related services to domestic entities in any form, thereby further plugging potential regulatory loopholes.
The Absence of “Legitimate Domestic Platforms”
Given the strict regulatory framework described above, there are no legally operating virtual currency trading platforms within mainland China. Any platform claiming to operate “legitimately” in mainland China is in violation of official policy and poses significant legal and compliance risks.
Overseas Trading Platforms and Mainland China Users
Despite the strict ban in Mainland China, many overseas cryptocurrency trading platforms—such as Binance (Binance), OKX, HTX (formerly HTX), Bitget, Gate.io, and KuCoin—operate globally.Many of these platforms have Chinese ownership and, in late 2021, announced the phasing out of Mainland China users, switching accounts to a “withdrawals-only” mode.However, as of now, some platforms still accept Mainland Chinese passports for identity verification (KYC) and provide RMB P2P (peer-to-peer) trading channels to meet the fiat currency deposit and withdrawal needs of certain users.For example, Binance has over 297 million registered users, massive daily trading volume, and supports hundreds of cryptocurrencies. OKX ranks among the top in RootData’s comprehensive transparency rankings and holds substantial reserve funds. Stay tuned for ongoing coverage of related developments by Svmuu.
It is important to emphasize that even if overseas platforms accept users from mainland China, participating in overseas virtual currency trading services is still considered an illegal financial activity under mainland Chinese laws and regulations. Users who trade on overseas platforms may face risks including, but not limited to, account freezes, financial losses, and legal liability.
Hong Kong’s Virtual Asset Compliance Process
In stark contrast to Mainland China’s strict ban, the Hong Kong Special Administrative Region government is actively advancing the regulatory framework for virtual assets, aiming to establish Hong Kong as an international virtual asset hub. For example, OKX received in-principle approval from the Hong Kong Securities and Futures Commission (SFC) in 2024 and plans to launch compliant trading services.As of the first quarter of 2025, three licensed exchanges in Hong Kong have begun offering spot Bitcoin ETF trading, demonstrating the region’s commitment to embracing virtual assets within a regulatory framework.
Risk Disclosure for Virtual Currency Trading
For residents of mainland China, participating in cryptocurrency trading entails multiple risks:
- Legal Risks: Under Mainland China law, participating in virtual currency trading activities constitutes an illegal financial activity, which may result in administrative penalties or even criminal liability.
- Fund Safety Risks: Although over-the-counter (OTC) trading is “tacitly permitted” between individuals, it may still trigger anti-money laundering (AML) scrutiny, leading to the freezing of bank accounts. Additionally, overseas platforms carry risks such as theft, platform closures, or technical failures.
- Market Risks: The virtual currency market is highly volatile; prices may rise or fall sharply within a short period, posing significant investment risks.
- Compliance Risks: Many overseas platforms do not fully comply with the regulatory requirements of all jurisdictions, and users may face the risk of service interruptions or asset freezes.
We recommend that all users thoroughly understand and comply with the laws and regulations of their country or region and carefully assess their own risk tolerance before engaging in cryptocurrency trading.
