The Current State of Virtual Currency Trading Platforms in Mainland China
Since 2021, Mainland China has implemented a strict ban on virtual currency trading and related business activities. People's Bank of China (PBOC) A notice jointly issued by ten government departments, including the Ministry of Industry and Information Technology, explicitly states that virtual currency-related business activities constitute illegal financial activities and are strictly prohibited across the board. This includes, but is not limited to, 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, the provision of information intermediary and pricing services, token issuance for fundraising, and the trading of virtual currency-related financial products.
Even overseas virtual currency exchanges that provide services to residents within China via the Internet are deemed to be engaging in illegal financial activities. Relevant regulatory authorities continue to strengthen monitoring and hold parties accountable. Consequently, as of 2023 and at the time of publication (August 24, 2026), there are no legally operating virtual currency trading platforms within mainland China.
Although the personal holding or trading of virtual currencies may not be explicitly deemed illegal in mainland China, such activities are not protected by law. In judicial cases involving cryptocurrency transactions, courts adopt a cautious stance; related civil legal acts are often deemed invalid, and any resulting losses are typically borne by the participants themselves.In February 2026, eight government departments—including the People's Bank of China (PBOC)—jointly issued another notice, reaffirming and further refining requirements for the prevention and handling of risks associated with virtual currencies, and emphasizing the continued prohibition of virtual currencies within the mainland.
It is worth noting that the policies in Hong Kong, China differ from those in mainland China. On June 1, 2023, Hong Kong implemented a licensing system for virtual asset trading platforms, allowing licensed platforms to provide trading services for mainstream virtual assets such as Bitcoin and Ether to retail investors. This reflects the divergent regulatory approaches to virtual assets across different jurisdictions.
Cryptocurrency Theft Software and Digital Asset Security Measures
“Cryptocurrency theft software” does not refer to legitimate trading tools, but rather broadly encompasses various types of malware and fraudulent schemes designed to steal users’ cryptocurrency assets. As the value of digital assets has risen, incidents of cryptocurrency theft have become frequent, with attacks growing in scale and complexity.For example, reports indicate that in the first half of 2025 alone, nearly $1.93 billion in cryptocurrency was stolen globally, highlighting the severe challenges facing digital asset security.
Common cryptocurrency theft methods include:
- Malware/Spyware: This type of software infiltrates users’ devices to steal sensitive information such as private keys and mnemonic phrases, or to remotely control devices to transfer assets.
- Phishing scams: Attackers create fake websites or apps, or send phishing emails, mimicking legitimate platforms to trick users into entering wallet credentials, private keys, or mnemonic phrases, thereby stealing their assets.
- Fake apps: These apps masquerade as legitimate wallet or exchange applications; once users download and use them, any funds they deposit or private keys they enter fall into the hands of attackers.
- Clipboard Hijackers: This type of malware monitors the user’s clipboard; when a user copies a wallet address to make a transfer, it automatically replaces it with the attacker’s address.
- Ransomware: Locks users’ devices or encrypts their files, demanding payment of a ransom in cryptocurrency to restore access.
- Fake AML Verification Websites: Fraudulent websites claim to require “anti-money laundering verification” and ask users to connect their wallets or sign transactions, but actually steal their funds.
- Pump and Dump: Scammers use false propaganda to hype a particular token, driving up its price before quickly dumping it, causing massive losses to other investors who blindly follow the trend.
Recommendations for Protecting Digital Assets:
Due to the irreversible nature of cryptocurrency transactions, once funds are stolen, they are nearly impossible to recover. Therefore, users must remain highly vigilant at all times and strengthen their security awareness:
- Be wary of promises of high returns: Any project promising excessively high or unrealistic returns should be treated as a potential scam.
- Enhance Security Awareness: Do not casually click on suspicious links or download unknown attachments, and be wary of any website that asks you to connect your wallet or enter your private key.
- Use hardware wallets: Hardware wallets are generally considered one of the safest ways to protect digital assets because they store private keys offline, significantly reducing the risk of online attacks.
- Revoke Token Authorizations: For users who have interacted with suspicious websites, it is recommended to disconnect your wallet promptly and use authorization management tools to revoke token authorizations for suspicious smart contracts.
- Multi-factor authentication: Enable two-factor authentication (2FA) for all accounts and use strong passwords.
- Download from Official Channels: Download wallet and exchange apps only from official websites or trusted app stores.
