Virtual Currency Regulatory Policies in Mainland China
Since 2017, mainland China has gradually established a comprehensive prohibition policy on virtual currency transactions. The initial ban primarily targeted domestic virtual currency exchanges. Subsequently, in September 2021, the People's Bank of China (PBOC) and nine other departments jointly issued a notice, clarifying that virtual currencies do not have legal tender status and strictly prohibiting any virtual currency-related business activities. This ban specifically emphasized that overseas virtual currency exchanges providing services to Chinese residents via the internet also constitute illegal financial activities, and relevant liabilities will be pursued in accordance with the law.
This regulatory stance continued to be strengthened in subsequent years. In November 2025, the People's Bank of China (PBOC) led a meeting with 13 departments, reiterating the illegality of virtual currency-related businesses and, for the first time, clarifying the definition of stablecoins, signaling that regulation would become normalized and institutionalized. Entering February 2026, the People's Bank of China (PBOC) and seven other departments again jointly issued a document, emphasizing the strict prohibition of all virtual currency-related business activities within mainland China. It is worth noting that Chinese law explicitly states that personal possession of Bitcoin itself is not illegal, but any organized, commercial crypto trading, mining, or provision of trading services is strictly prohibited.
OKX's Global Positioning and Restrictions in Mainland China
OKX (Chinese brand name "欧易") is one of the world's leading digital asset service platforms, headquartered in Seychelles and holding compliance licenses in multiple countries and regions. It is committed to providing comprehensive crypto services such as spot, futures, margin trading, and Web3 wallets to global users. As of May 2026, OKX ranks second globally with an integrated market share of approximately 18%.
Despite OKX's active global expansion and compliant operations, its operations in mainland China are strictly restricted. According to mainland China's regulatory policies, OKX, as an overseas virtual currency exchange, providing trading services to Chinese residents is explicitly identified as an illegal financial activity. Therefore, there are no legal and compliant Bitcoin trading platforms within mainland China, and OKX cannot legally provide trading services to mainland Chinese residents. OKX conducted a service migration in late July 2026, moving latency-sensitive services from Hong Kong to Tokyo to improve trading performance and user experience, but this does not change its regulatory status in mainland China.
Risks and Alternatives for Mainland Chinese Users Participating in Bitcoin Trading
For individual users in mainland China, participating in Bitcoin "deposits" or transactions through any channel carries extremely high legal and financial risks. Accessing overseas exchanges via VPNs, P2P transactions, or informal OTC networks may cross legal red lines, leading to fund freezes or even criminal liability. The Chinese government/regulatory agencies have clearly stated that virtual currency trading and speculation activities disrupt economic and financial order and breed illegal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering, thus maintaining a high-pressure stance.
In a strict regulatory environment, mainland Chinese users who wish to engage with the digital asset sector may consider the following legal and compliant alternatives:
- Indirect investment in overseas assets: Individuals with international status or legal procedures can indirectly invest in traditional financial products such as overseas stocks and ETFs linked to Bitcoin.
- Participation in legal domestic digital collectibles (NFT) trading: In mainland China, digital collectibles (NFTs) are allowed to be traded under specific compliance frameworks, but strict distinction from virtual currencies must be observed.
- Learning blockchain technology: Focus on the research and application of blockchain technology, rather than virtual currency trading.
Bitcoin Market Historical Volatility
Mainland China's regulatory policies have had a significant impact on the global Bitcoin market. For example, after China completely banned cryptocurrency trading and mining in 2021, the cryptocurrency market experienced a sharp decline. After the ban was issued in September of the same year, Bitcoin's price fell from approximately $52,000 to about $40,000 in a few weeks. These historical events reflect the potential impact of policy changes in China, as an important market, on global crypto asset prices.
