Overview of Mainland China's Virtual Currency Regulatory Policies
Mainland China has long adopted strict prohibition and crackdown policies on virtual currencies. Virtual currencies are not granted legal tender status, and all related business activities are explicitly identified as illegal financial activities. This stance aims to maintain national financial order, prevent financial risks, and protect the safety of public property.
In February 2026, eight departments including the People's Bank of China (PBOC) jointly issued the "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies" (referred to as "Document No. 42"), which replaced the "Document No. 237" from 2021, further strengthening the prohibition of virtual currency-related businesses. A key new provision is that, without approval, domestic entities and their controlled overseas entities are prohibited from issuing virtual currencies overseas, and the scope of regulation has been expanded to include overseas issuance activities, explicitly stating that overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities illegally in any form.
Against this backdrop, virtual currency "mining" activities have also been continuously rectified, with existing projects comprehensively reviewed, investigated, and shut down, and new projects strictly prohibited. Regulatory agencies continue to combat virtual currency trading and speculation through various means, including joint law enforcement, delisting relevant applications (APPs), and blocking website domains. For example, as early as October 2022, the Beijing Chaoyang Court disclosed that 13 virtual currency trading APPs, including OKEx, had been delisted, and related websites and domains had also been blocked.
Withdrawal of Mainstream Trading Platforms and Compliance Risks
Affected by Mainland China's strict regulatory policies, several global mainstream virtual currency trading platforms, including Binance, OKX, and HTX, announced the withdrawal of Mainland Chinese users by the end of 2021. These platforms typically switch Mainland Chinese users' accounts to a "withdrawal-only" mode and delist the RMB trading zone to comply with local regulations.
Nevertheless, some overseas platforms may still technically support registration for Mainland Chinese users (e.g., via email and VPN) and provide Chinese language services. However, it must be emphasized that, according to Mainland Chinese laws and regulations, the provision of services by these platforms to residents within China itself constitutes illegal financial activity. Therefore, domestic users who use these platforms will face extremely high legal and asset security risks. Any attempt to circumvent regulatory restrictions may lead to financial losses, legal sanctions, and even criminal liability.
For global users who wish to understand virtual currency market trends, they can view real-time prices and trends of mainstream cryptocurrencies such as Bitcoin and Ethereum on professional market information platforms like Svmuu, and obtain 24/7 updated global market data. However, please note that such information is for reference only and does not constitute any investment advice.
Hong Kong Market's Compliance Pathways and Restrictions
Unlike Mainland China's strict prohibition policies, the Hong Kong SAR Government is actively building a virtual asset regulatory framework and has issued multiple virtual asset trading platform licenses. As of early 2026, the Hong Kong SFC has issued 12 virtual asset trading platform licenses, such as OSL and HashKey Exchange. These licensed platforms operate under strict regulation, providing compliant virtual asset trading services to eligible professional investors.
For non-Mainland Chinese residents who can establish Hong Kong identity or banking relationships, Hong Kong's licensed exchanges offer a relatively compliant pathway for virtual asset trading. However, Mainland Chinese residents directly trading virtual currencies through Hong Kong licensed platforms still need to comply with Mainland Chinese laws and regulations and may face relevant restrictions. Please be sure to fully understand and comply with the laws of your jurisdiction before participating in any trading activities.
Risk Warning
The virtual currency market is highly volatile, and Mainland China's regulatory policies are strict. Any domestic user participating in virtual currency-related activities should fully recognize the enormous risks involved, including but not limited to:
- Legal Risks: Participating in virtual currency trading or related activities may violate Mainland Chinese laws, leading to administrative penalties or even criminal liability.
- Asset Security Risks: Overseas platforms may have operational risks, technical vulnerabilities, or policy uncertainties, leading to user asset losses.
- Market Risks: Virtual currency prices are highly volatile, which may lead to the loss of investment principal.
- Fraud Risks: There are numerous fraud, pyramid schemes, and illegal fundraising activities in the market under the guise of virtual currencies; users need to be vigilant.
This site reminds all readers to strictly abide by local laws and regulations, view virtual currencies rationally, and refrain from participating in any illegal financial activities.
