Overview of Cryptocurrency Regulation in Mainland China
Since September 2021, the People's Bank of China (PBOC) and nine other departments jointly issued a notice explicitly classifying virtual currency-related business activities as illegal financial activities and prohibiting overseas virtual currency exchanges from providing services to residents within China. However, it is noteworthy that a ruling by the Shanghai Songjiang Court in November 2024 recognized cryptocurrency as "virtual property," with individual holdings protected by law. As of 2026, Chinese regulatory authorities have further strengthened control over virtual currency transactions, with stricter legal risks and enforcement. In this context, users in mainland China face significant legal and financial risks when participating in cryptocurrency transactions.
Policies and Current Status of Major International Exchanges for Mainland Chinese Users
Although most mainstream international exchanges announced the delisting of mainland Chinese users and the closure of related trading functions by the end of 2021, according to the latest market observations, some platforms still maintain a certain degree of accessibility or identity verification channels in practice. It must be emphasized that this "accessibility" usually comes with high risks and does not imply official endorsement or encouragement for mainland Chinese users to circumvent local regulations.
- Binance: As one of the world's leading cryptocurrency exchanges, Binance officially stopped supporting direct registration for new mainland Chinese users since 2021. However, market information suggests that mainland Chinese identities may still complete KYC verification, and account permissions are largely consistent with those of overseas users. Its spot, perpetual contract, NFT, and Web3 wallet services, along with the $1 billion SAFU fund asset protection mechanism, position it significantly in the global market.
- OKX: OKX is one of the top three global exchanges. While it officially implemented a delisting policy, it is reportedly not completely blocking mainland Chinese identity verification. Some mainland Chinese users can still register, verify, and use its services through specific methods. The platform offers spot, margin, perpetual contract trading, as well as earning, staking, and lending financial services.
- HTX (formerly Huobi): As an established exchange, HTX announced a complete delisting of mainland Chinese users by the end of 2021. Nevertheless, it still holds some influence among Chinese-speaking user groups.
- Kraken: Between 2025 and 2026, Kraken was considered by the market as one of the platforms more friendly to mainland Chinese passport KYC. It reportedly accepts mainland Chinese passports and second-generation ID cards for real-name verification and allows direct selection of "Mainland China" as the country of residence. The platform supports USD payments to Hong Kong bank accounts and is known for 98% user asset cold storage and transparent financial reports.
- MEXC: MEXC is known for its fast new coin listings and low fees, with spot trading maker fees as low as 0%. The platform allows low KYC level users to conduct small transactions and withdrawals, suitable for users who prefer not to disclose their identification documents. Although its P2P service supports fiat currency transactions, mainland Chinese users face compliance risks when using such services.
- Gate.io: Gate.io is known as an "altcoin paradise" for supporting a large number of altcoins, offering trading for over 2000 cryptocurrencies, and is renowned for its technical stability and security.
- Bybit: Bybit is one of the leading platforms in global trading volume, offering various asset trading and derivatives services. In 2024, the platform announced that Chinese users residing overseas can open accounts and use its services.
Risk Warnings for Mainland Chinese Users Using Overseas Exchanges
For mainland Chinese users, using overseas cryptocurrency exchanges carries multiple risks:
- Legal and Compliance Risks: According to mainland China's regulatory policies, overseas exchanges providing services to domestic residents constitute illegal financial activities. Participation may lead to administrative penalties or even criminal liability.
- Fund Security Risks: Bank cards may be frozen due to suspected illegal transactions, leading to funds being inaccessible. Additionally, exchanging fiat currency for cryptocurrency through unofficial channels (e.g., P2P transactions) may involve risks such as money laundering.
- Foreign Exchange Control Risks: Large-amount fiat currency deposits and withdrawals may violate foreign exchange management regulations, leading to fines or other legal consequences.
- Lack of Asset Protection: In the event of trading disputes, platform exit scams, or hacker attacks, mainland Chinese users will not receive legal protection, making it difficult to defend their rights.
- Access Stability Issues: The domains of most overseas exchanges are intermittently blocked in mainland China, leading to unstable access, affecting trading experience and asset management.
Given the aforementioned risks, mainland Chinese users considering participation in cryptocurrency transactions must fully understand and assess the potential legal and financial risks. For the latest developments in the cryptocurrency market, users can follow news platforms such as Svmuu for relevant information, but any trading decisions should be based on local laws and regulations, and users assume all risks themselves.
