Current State of Cryptocurrency Regulation in Mainland China
Mainland China has adopted a comprehensive and strict prohibition policy on cryptocurrency-related activities. Since 2021, the People's Bank of China and other departments have continuously tightened controls over virtual currencies, issuing "Ban 2.0" in February 2026, which further clarified that all virtual currency-related business activities (including trading, mining, marketing, payment and settlement, etc.) are illegal financial activities. This ban also expanded the scope of regulation to include stablecoins pegged to the RMB and Real World Asset (RWA) tokenization.
While operating cryptocurrency platforms or providing related services is illegal in mainland China, individual ownership of cryptocurrencies is practically considered a "grey area." However, any related trading activities are deemed to violate "public order and social morality," and investors bear all resulting losses and risks themselves. The Chinese government is committed to maintaining financial stability and views private cryptocurrency activities as illegal financial activities and potential sources of money laundering and fraud risks.
Promotion and Application of Digital Yuan (e-CNY)
In stark contrast to private cryptocurrencies, the official Central Bank Digital Currency (CBDC) issued by the People's Bank of China – the Digital Yuan (e-CNY) – is being rapidly promoted. The Digital Yuan has legal tender status, equivalent in value to banknotes and coins, and aims to provide faster, cheaper, and more secure transaction experiences.
- Key Functions and Features: Users can set up multiple digital wallets via the Digital Yuan App, link bank cards, and set spending limits. It supports online and offline payments, utilizes NFC technology for offline transactions, and transactions are typically free of charge and settled in real-time. Currently, the Digital Yuan has been integrated into the service ecosystems of major e-commerce giants such as Alibaba (e.g., Ele.me, Hema Fresh, Taobao, Tmall) and Tencent.
- Usage by Foreigners: The Digital Yuan App has been optimized for foreigners, supporting Visa and Mastercard top-ups, and cash top-ups at banks. Foreigners can use e-CNY to pay at physical merchants and online platforms such as Didi, Meituan, Trip.com, and JD.com. However, some "higher-level" wallet functions still require a Chinese ID to be fully activated, which may impose spending limits on foreigners.
- Development Data: As of the end of November 2025, the total transaction volume of the Digital Yuan had reached 16.7 trillion RMB (approximately 2.37 trillion USD), demonstrating its rapid penetration in the payment sector.
Hong Kong's Virtual Asset Regulatory Framework
Unlike mainland China, Hong Kong has an independent virtual asset regulatory framework. The Securities and Futures Commission (SFC) of Hong Kong adopts a relatively open but strict licensing regime. As of the time of writing, it has licensed several virtual asset trading platforms, including OSL and HashKey Exchange, providing a legal basis for compliant crypto asset trading.
Overview of Major Global Cryptocurrency Trading Platforms
Globally, numerous cryptocurrency trading platforms offer diverse services. While mainland China has banned cryptocurrency trading, these platforms play a significant role in the international market. Below are some platforms with notable international recognition and user bases:
- Binance: As one of the world's largest cryptocurrency trading platforms, Binance offers comprehensive cryptocurrency services, including spot, futures trading, financial products, and a Web3 wallet. It typically leads in trading volume and liquidity for major cryptocurrencies (such as Bitcoin and Ethereum).
- OKX: OKX is another globally renowned cryptocurrency trading platform, offering spot, futures, options trading, as well as a Web3 wallet, NFT marketplace, and other services.
- Bybit: Bybit is known for its low trading fees and strong futures trading liquidity, particularly favored by active traders.
- Kraken: Kraken is a long-established cryptocurrency exchange recognized by users for its security, compliance, and diverse trading pairs.
- Bitget: Bitget offers spot, futures, and copy trading services, with its social trading features popular among some users.
- MEXC: MEXC attracts users with its lower spot trading fees and faster listing speed, offering various altcoin trading opportunities.
- HTX: HTX has a broad user base in the global market, providing spot and futures trading services.
- Gate: Gate platform typically offers a wide selection of altcoins, meeting users' demand for diversified assets.
- HashKey Exchange: As a licensed virtual asset trading platform in Hong Kong, HashKey Exchange provides services to professional investors within a compliant framework.
It is important to emphasize that users in jurisdictions where cryptocurrency trading is restricted may face legal and financial risks when accessing and using the aforementioned platforms. Please ensure compliance with local laws and regulations and fully understand and assess all potential risks before engaging in any cryptocurrency activities.
