Regulatory Status of Bitcoin Trading in Mainland China
Since 2021, mainland China has adopted a comprehensive and strict prohibition policy on virtual currency trading activities. In September 2021, the People's Bank of China and nine other departments jointly issued a notice, explicitly defining virtual currency-related business activities as illegal financial activities and resolutely banning them in accordance with the law. Since then, regulatory efforts have continuously intensified, including the provision of services by overseas virtual currency exchanges to residents within China via the internet, which is also considered an illegal financial activity and is subject to strict monitoring.
In February 2026, the People's Bank of China and seven other departments reiterated that virtual currencies do not possess legal tender status and must not be circulated as currency. Business activities conducted within China, such as the exchange between legal tender and virtual currencies, exchange between virtual currencies, acting as a central counterparty for buying and selling virtual currencies, providing information intermediary and pricing services, token issuance financing, and virtual currency-related financial product trading, are all considered illegal financial activities. This series of policies clearly defines the Chinese government's "complete prohibition model" for cryptocurrency trading, which stands in stark contrast to the "regulatory inclusive model" generally adopted by other countries worldwide.
No "Legitimate Platforms" within Mainland China
Given the strict regulatory policies mentioned above, there are currently no compliant, legally recognized Bitcoin trading platforms or software within mainland China. All virtual currency exchanges that once operated in mainland China, such as the early BTC China, Huobi (now HTX), and OKCoin (now OKX), ceased their domestic operations after the "94 Ban" in 2017 and transitioned to overseas markets. Therefore, any platform claiming to be "legitimate" or "best to use" for Bitcoin trading in mainland China is inconsistent with current regulatory realities.
Furthermore, Chinese banks and payment institutions (such as Alipay and WeChat Pay) are explicitly prohibited from providing services for virtual currency transactions and actively monitor and identify suspicious transaction behaviors to prevent money laundering and other illegal financial activities.
Risks of Personal Holding and Trading
Although Chinese law does not prohibit individuals from holding virtual assets like Bitcoin, treating them as "virtual commodities" or "virtual property" protected by law, individuals participating in virtual currency trading activities face significant risks. Acquiring Bitcoin through unofficial channels such as overseas cryptocurrency exchanges or P2P (peer-to-peer) trading may entail the following risks:
- Legal Risks: Although personal holding is not illegal, participating in trading activities may border on illegal financial activities, especially when the counterparty is involved in illegal or criminal activities, individuals may face legal risks such as "card freezing."
- Fund Security Risks: Overseas platforms operate outside the jurisdiction of Chinese law, making it difficult to guarantee the security of user funds. P2P transactions also carry risks of counterparty default, fraud, or illegal sources of funds.
- Technical Risks: Accessing overseas platforms may require the use of tools like VPNs, posing cybersecurity risks.
- Policy Uncertainty: Regulatory policies may further tighten, leading to the invalidation of existing trading channels or increased risks.
Therefore, for residents of mainland China, it is crucial to fully recognize the high risks associated with participating in Bitcoin trading activities and strictly adhere to local laws and regulations to avoid engaging in any illegal financial activities.
