Cryptocurrency Regulatory Framework in Mainland China
Since September 2021, the People's Bank of China (PBOC) and nine other departments jointly issued a notice clarifying that virtual currencies do not possess legal tender status, and any virtual currency-related business activities are deemed illegal financial activities. This includes overseas virtual currency exchanges providing services to residents within China via the internet. This measure aims to prevent financial risks and combat criminal activities such as money laundering and fraud.
Regulatory policies were further escalated in February 2026, when the "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies" (Document No. 42), issued by the People's Bank of China and seven other departments, reiterated the illegality of virtual currency-related businesses. This notice for the first time explicitly prohibits unauthorized domestic entities and their controlled overseas entities from issuing virtual currencies abroad, or issuing stablecoins pegged to the RMB, and strictly prohibits overseas institutions from providing virtual currency-related services to domestic residents.
According to the policy interpretation in mainland China, holding cryptocurrencies personally is not illegal, but operating platforms, providing trading services, or using cryptocurrencies for commercial operations are illegal. Any activities involving trading, speculation, or financing through virtual currencies may cross legal red lines and entail legal and financial risks. Furthermore, the Chinese government continues to crack down on virtual currency "mining" activities, comprehensively investigating and shutting down existing projects, and strictly prohibiting new "mining" projects.
Historical Evolution and Market Impact
Before the 2017 ban, China once accounted for about 80% of global Bitcoin trading volume, making it a significant force in the global cryptocurrency market. However, with the tightening of regulatory policies, this landscape completely changed. After China's comprehensive ban in September 2021, Bitcoin prices experienced a sharp decline in a short period. For example, Bitcoin fell by 5.3% to $41,450.8 at the time, demonstrating the influence of Chinese regulatory policies on the global market.
Trading platforms that were historically active in mainland China, such as BTCC (Bitcoin China), founded in 2011, was once China's first Bitcoin exchange and became the world's second-largest trading platform in October 2014, but ceased all trading operations on September 30, 2017. HTX (Huobi) and OKX were once the three major Bitcoin trading platforms in China. After stricter regulations, they have fully shifted their business focus overseas, primarily serving international users.
Current Trading Status and Risks for Mainland Chinese Residents
As there are no compliant cryptocurrency trading channels within mainland China, local residents face significant legal and financial risks when participating in cryptocurrency trading. Some users may engage in transactions through unofficial channels, such as using Virtual Private Networks (VPNs) to access international cryptocurrency trading platforms, or purchasing stablecoins (like USDT) with RMB through peer-to-peer (P2P) markets before converting them to Bitcoin. However, these methods operate in a gray area and may lead to risks such as frozen bank accounts, with extremely high legal risks.
For eligible Chinese residents, such as those holding Hong Kong identity or bank accounts, opening an account with licensed and compliant exchanges in Hong Kong (e.g., OSL, HashKey Exchange) is considered a relatively compliant avenue. However, this is limited to specific user groups that meet Hong Kong's regulatory requirements.
Globally, Bitcoin, as the largest cryptocurrency by market capitalization, can still be traded on platforms that support it. Users can check the latest prices and project information on market data platforms like Svmuu to ensure transparency and security of transactions. As of the time of publication, Bitcoin can be traded on platforms such as BTCC, CoinUp.io, Pionex, Azbit, KCEX, Binance, BitDelta, BloFin, Hotcoin, CoinW, Ourbit, Tapbit, Biconomy.com, MEXC, and WEEX.
The information on platforms for sale in the article is subject to changes in the listing and delisting dynamics of various exchanges. Please refer to the official announcements of the exchanges.
