Current Status of Virtual Currency Trading Platforms and Applications in Mainland China
As of September 7, 2026, Mainland China has implemented a comprehensive and strict prohibition policy on virtual currency trading platforms and related applications (APPs). This means that currently, there are no legal and compliant virtual currency trading platforms or trading APPs available for residents in Mainland China.
Regulatory Policies and Legal Framework
Since 2021, the Chinese government has continuously strengthened its regulation of virtual currency activities.
- Comprehensive Prohibition of Virtual Currency-Related Businesses: On September 24, 2021, the People's Bank of China (PBOC) and nine other departments issued a notice explicitly defining virtual currency-related business activities as illegal financial activities, requiring their strict prohibition and lawful suppression. This covers various forms such as fiat currency to virtual currency exchange, virtual currency to virtual currency exchange, virtual currency trading as a central counterparty, providing information intermediary and pricing services, token issuance financing, and virtual currency derivatives trading. The notice also specifically stated that overseas virtual currency exchanges providing services to Chinese residents via the internet are also considered illegal financial activities.
- Policy Reiteration and Strengthening: On February 6, 2026, the People's Bank of China (PBOC) and seven other departments jointly issued another notice, further reiterating the illegality of virtual currency-related business activities and emphasizing their strict prohibition within the country. The notice also placed clear restrictions on the issuance of RMB-pegged stablecoins by overseas entities and the issuance of virtual currencies by domestic entities and their controlled overseas entities abroad.
- Legal Status of Virtual Currencies: Officially, Bitcoin and other virtual currencies are defined as "specific virtual commodities" that do not possess the same legal status as fiat currency and therefore cannot and should not be circulated or used as currency in the market.
- APP Delisting and Blocking: To enforce the above policies, the People's Bank of China (PBOC) coordinated with relevant departments in October 2022 to block websites and APPs involved in virtual currency trading, including download addresses and related domain names of several virtual currency exchange APPs.
Risks for Mainland Chinese Residents Participating in Virtual Currency Trading
Despite the explicit policy prohibition, some Mainland Chinese residents may still attempt to participate in virtual currency trading through various channels. However, such activities carry extremely high legal and financial risks:
- Legal Risks: While merely holding virtual currency itself does not constitute a violation, any activities involving trading, exchange, or financing may cross legal red lines, leading to administrative penalties or even criminal liability.
- Fund Security Risks: Participating in unregulated trading channels may lead to risks such as fraud, fund freezing, platform exit scams, asset losses due to severe market volatility, and technical asset loss. Bank cards may be frozen due to suspected illegal transactions.
- Compliance Risks: Overseas virtual currency exchanges providing services to Mainland Chinese residents are themselves illegal, and users' assets and trading activities on these platforms are not protected by Chinese law.
Regulatory Model in the Hong Kong Special Administrative Region
Unlike Mainland China's comprehensive prohibition policy, the Hong Kong Special Administrative Region has established a licensed regulatory system for virtual assets under the principle of "structured regulation." The Securities and Futures Commission (SFC) of Hong Kong has issued a Virtual Asset Service Provider (VASP) licensing regime, where only exchanges that have obtained an SFC license can legally and compliantly provide virtual asset trading services in Hong Kong. For example, OSL Exchange and HashKey Exchange are currently licensed and regulated virtual asset trading platforms in Hong Kong.
