Current State of Virtual Currency Regulation in Mainland China: Comprehensive Ban and Absence of "Legitimate Platforms"
Since September 2021, mainland China has comprehensively banned all virtual currency-related business activities, explicitly defining them as illegal financial activities. This means that within mainland China, any exchange between fiat currency and virtual currency, transactions between virtual currencies, acting as a central counterparty to buy or sell virtual currencies, and providing information intermediary and pricing services for virtual currency transactions are all prohibited. Overseas virtual currency exchanges providing services to Chinese residents via the internet are also subject to strict monitoring and may face accountability.
Therefore, regarding the phrase "legitimate virtual currency trading platforms in China in 2023," it must be clearly stated that as of 2023 and the time of publication in 2026, there are no "legitimate" or "legally operating" virtual currency trading platforms within mainland China. Any platform claiming to operate legally in mainland China may be involved in illegal activities or fraud.
Legal Risks of Personal Holding and Trading
While some argue that personal holding of cryptocurrency itself has not been explicitly prohibited, all commercial activities related to virtual currency are considered illegal financial activities in mainland China. Participation in virtual currency investment and trading activities is not protected by law, and any losses incurred therefrom must be borne by individuals. It is worth noting that information from 2025 further indicates that China's ban on cryptocurrency has extended to institutions, commercial activities, and personal ownership of Bitcoin and other digital assets, and may even criminalize personal holding of cryptocurrency, significantly increasing the legal risks for individuals.
The Chinese government and regulatory agencies (including the People's Bank of China (PBOC), the Ministry of Public Security, the Cyberspace Administration of China, and 10 other departments) have adopted a "comprehensive prohibition model" aimed at maintaining economic and financial order, preventing illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering that virtual currencies may foster, and supporting the promotion of the digital yuan.
Regulatory Differences in Hong Kong: Limited Opening Under a Licensing System
In stark contrast to mainland China's comprehensive prohibition policy, Hong Kong implemented a new Virtual Asset Service Provider (VASP) licensing regime on June 1, 2023. This regime allows licensed virtual asset trading platforms to provide services to retail investors, provided they meet strict regulatory requirements. This move makes Hong Kong one of the few jurisdictions open to virtual asset trading, but its regulatory framework differs fundamentally from mainland China's policy.
General Characteristics of Safe and Reliable Virtual Currency Platforms Globally (Not Applicable to Mainland China)
Given mainland China's strict ban, the following safety features and platforms are for reference only for legally compliant virtual currency trading platforms globally and do not represent their legality or availability in mainland China. When choosing a platform, users should prioritize the laws and regulations of their jurisdiction and independently verify the platform's compliance and security.
- Asset Storage Security: Most platforms use offline cold storage combined with multi-signature wallets to reduce the risk of cyberattacks.
- User Account Protection: Provides advanced access control features such as two-factor authentication (2FA), withdrawal limits, IP checks, and account activity notifications.
- Platform-Level Measures: Equipped with threat detection systems, regular security audits, and bug bounty programs to continuously monitor and respond to potential threats.
- Compliance and Regulation: Platforms are licensed and regulated by relevant national or regional financial regulatory bodies, such as Coinbase and Gemini in the United States.
- Transparency and Reputation: Platforms with a long operating history, large user base, transparent information, and good market reputation are generally more reliable.
Examples of Globally Renowned Virtual Currency Trading Platforms (Not Applicable to Mainland China)
Below are some well-known virtual currency trading platforms globally. They operate in different jurisdictions around the world but are not applicable to users in mainland China:
- Binance: Founded in 2017, it is one of the largest platforms by trading volume globally, offering various cryptocurrency trading services.
- Coinbase: Founded in 2012, known for its user-friendly design and strong security, regulated in the US.
- OKX: One of the globally renowned exchanges, offering a diverse range of trading products.
- Bybit: Founded in 2018, offers spot and derivatives trading services.
- KuCoin: Founded in 2017, supports various virtual currencies and futures trading.
- Gate.io: Founded in 2013, offers a large number of tradable coins.
- Bitget: Founded in 2018, focuses on contracts and copy trading.
- HTX: Formerly Huobi HTX, a cryptocurrency exchange headquartered in Singapore.
- Gemini: Focuses on security, regulated by the New York Department of Financial Services.
- CEX.IO: With over 11 years of operational experience, committed to compliance and security.
Please note that the compliance status and service scope of the above platforms may vary in different parts of the world. Before choosing any trading platform, users must independently verify its legality, regulatory status, and user agreement in their local area, and fully understand the associated risks.
