Virtual Currency Regulatory Landscape and USDT's Status in Mainland China
As of August 29, 2026, mainland China maintains strict regulatory policies on virtual currency. According to relevant laws and regulations, personal holdings of cryptocurrency have been ruled as "virtual property" by the Songjiang Court in Shanghai, thus protected by law. However, all commercial operational activities related to cryptocurrency, including establishing exchanges, providing trading services, and large-scale mining, are deemed illegal financial activities by the People's Bank of China (PBOC). Overseas trading platforms providing online services to mainland Chinese residents are also explicitly prohibited.
Notably, in March 2026, the People's Bank of China (PBOC), the Ministry of Public Security, and the State Administration of Foreign Exchange jointly announced that over-the-counter (OTC) trading of USDT, Bitcoin, and other stablecoins and cryptocurrencies would be linked to foreign exchange controls and underground banking activities, potentially involving criminal liability. Furthermore, in November 2025, the PBOC coordination meeting had already listed stablecoins as a new enforcement priority.
USDT, as one of the most widely circulated USD stablecoins globally, continues to see growth in its on-chain circulation and account numbers, playing a crucial role in payment and value storage within the cryptocurrency ecosystem. However, Tether, as the issuer, also faces increasing regulatory pressure.
Potential Channels and Risks for Mainland Chinese Users to Acquire USDT
Despite the strict regulatory environment, some mainland Chinese investors may still access global cryptocurrency trading platforms through specific channels. According to public information, as of early 2026, a few offshore platforms had accepted mainland Chinese passports and second-generation ID cards for real-name verification (KYC).
It must be emphasized that under the strict regulatory framework, any trading behavior attempting to circumvent legal restrictions carries extremely high legal and financial risks. In the first half of 2026, mainland Chinese police reported multiple cases of crypto-related money laundering, involving huge sums, with fund chains often traced back to overseas trading platforms.
For mainland Chinese residents, participating in virtual currency transactions entails the following main risks:
- Legal Risk: Participation in illegal financial activities may lead to legal sanctions.
- Fund Security Risk: Trading platforms may adjust their service policies for specific regions at any time, leading to fund freezing or loss.
- Compliance Risk: Overseas platforms may restrict or terminate services to mainland Chinese users due to regulatory pressure.
- Money Laundering Risk: OTC transactions may be used for illegal activities such as money laundering, thereby implicating traders.
Given the aforementioned risks, mainland Chinese users must fully understand and strictly comply with local laws and regulations, and prudently assess potential risks before considering acquiring USDT or participating in any virtual currency transactions.
Overview of Major Global Trading Platforms
Globally, several mainstream cryptocurrency trading platforms offer USDT trading services. These platforms typically support spot and futures trading for various cryptocurrencies, and provide fiat currency deposit/withdrawal or P2P trading services. For example, OKX, Binance, and HTX have a large number of users and trading volumes worldwide. Other platforms such as Bybit, Bitget, Kraken, and MEXC also offer diversified trading functions and asset selections.
The user numbers, asset scale, and trading volumes of these platforms change dynamically over time and are provided for reference only. For instance, as of February 2026, Binance's Secure Asset Fund for Users (SAFU) reached 15,000 BTC, demonstrating its commitment to user asset security.
Important Note: This article is for informational purposes only and does not constitute any investment advice. The virtual currency market is highly volatile and carries significant risks. Readers must make prudent decisions only after fully understanding the risks and complying with local laws and regulations.
