Overview of Virtual Currency Regulatory Policies in Mainland China
Since 2021, mainland China's regulatory stance on virtual currencies has become exceptionally clear and strict. The Chinese government has implemented a comprehensive ban on all cryptocurrency trading and mining activities, including Bitcoin and Ethereum. This series of measures aims to maintain national financial stability, prevent financial risks, and combat illegal activities related to virtual currencies, such as money laundering, fraud, and illegal fundraising.
The latest regulatory development is reflected in the "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies" (Yin Fa No. 42), jointly issued by eight departments including the People's Bank of China (PBOC) on February 6, 2026. This notice supersedes the ten-department notice of 2021 and further clarifies the prohibition of overseas entities and individuals from illegally providing virtual currency-related services to domestic entities in any form. This means that even cryptocurrency trading platforms operating overseas, their services provided to mainland Chinese residents are considered illegal financial activities.
Legal Status of Virtual Currencies and Personal Holding Risks
In mainland China, it is officially clarified that virtual currencies do not have the same legal status as legal tender and should not and cannot be circulated and used as currency in the market. This core principle forms the basis of all relevant regulatory policies.
For individuals, simply holding virtual currencies is not illegal in itself. However, any trading, exchange, or financing activities involving virtual currencies may cross legal red lines and carry extremely high legal and financial risks. Regulatory authorities emphasize that participating in such activities may lead to asset losses and are not protected by law. Therefore, mainland Chinese residents should strictly abide by local laws and regulations and avoid participating in any form of virtual currency trading activities.
Historical Bitcoin Trading Platforms in Mainland China
Before the tightening of regulations, mainland China was an important market for global Bitcoin transactions. Here are some representative historical platforms:
- Bitcoin China (BTC China/BTCC): Established on June 9, 2011, it was the first Bitcoin trading platform in mainland China. In its early days, Bitcoin China once accounted for over 80% of global Bitcoin trading volume. However, with the tightening of Chinese regulatory policies in 2017, the platform ceased its trading operations in mainland China and shifted to international operations.
- HTX (Huobi/HTX): Established in 2013, it was once one of the major cryptocurrency exchanges in mainland China. Under the regulatory requirements at the end of 2021, HTX announced the complete withdrawal of mainland Chinese users and fully shifted its business focus to overseas markets.
- OKCoin (OKX): Also established in 2013, it was also an important trading platform in mainland China. Similar to HTX, OKCoin shifted its business focus to international markets after 2017 and no longer promoted or provided services to the mainland Chinese market.
These platforms were once active historically, but currently, none of them provide trading services to mainland Chinese residents.
Current Market Status and Risk Warnings
As of the time of writing, there are no legally operating virtual currency trading platforms in mainland China. All domestic platforms have been shut down, and overseas platforms providing services to mainland Chinese residents are explicitly deemed illegal. Therefore, mainland Chinese residents cannot conduct Bitcoin or other virtual currency transactions through legal and compliant channels.
Although some overseas trading platforms may still be accessed by some mainland Chinese users through non-compliant channels, such behavior not only faces legal risks but may also encounter various financial security risks such as platform account freezing, inability to withdraw assets, fraud, and money laundering. Regulatory agencies continue to crack down on such illegal financial activities, reminding the public to stay away from virtual currency trading and protect their property safety.
It is worth noting that while strictly restricting decentralized cryptocurrencies, the Chinese government is actively promoting the development and application of its legal digital currency—the digital yuan (e-CNY). This indicates that China's strategy in the digital currency field is to develop controlled central bank digital currencies, rather than allowing the market circulation of decentralized virtual currencies.
