Overview of Mainland China's Virtual Currency Regulatory Policies
As of September 13, 2026, mainland China's regulatory policy on virtual currencies remains highly stringent. The "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies and Other Matters," jointly issued by the People's Bank of China, the National Development and Reform Commission, and six other departments in February 2026, explicitly states that virtual currencies do not possess the same legal status as legal tender, and related business activities are considered illegal financial activities, which are strictly prohibited within the country. The notice also specifically emphasizes that overseas virtual currency exchanges providing services to Chinese residents via the internet also constitute illegal financial activities.
Furthermore, enterprises and individual businesses in mainland China are prohibited from including terms or content such as "virtual currency" or "cryptocurrency" in their registered names and business scopes. In early 2026, the Central Political and Legal Affairs Work Conference mentioned conducting forward-looking legislative research on virtual currencies. This may aim to clarify their legal status (e.g., as "virtual property"), but it is expected to continue the main tone of strict regulation rather than a complete liberalization.
Risk Warnings for Mainland Chinese Users Participating in Virtual Currency Transactions
Given mainland China's strict regulatory policies, any mainland Chinese resident participating in virtual currency transactions faces significant risks, including but not limited to:
- Legal Risks: Participating in virtual currency transactions itself is considered an illegal financial activity in mainland China and may lead to legal consequences.
- Policy Risks: Regulatory policies may be adjusted at any time, leading to restrictions on platform services or affecting user assets.
- Bank Card Freezing Risks: When conducting P2P transactions through unofficial channels, the counterparty may be involved in illegal funds, leading to the judicial freezing of the user's bank card.
- Platform Security Risks: Any trading platform carries risks such as hacker attacks, poor operation, or exit scams, which may result in asset losses.
- Fund Security Risks: Illegal trading channels lack legal protection, making it difficult to effectively safeguard fund security.
This site reminds global readers to fully understand and comply with the laws and regulations of their respective jurisdictions and to prudently assess risks before engaging in any virtual currency-related activities. For residents of mainland China, please be sure to note the above risks and rely on official announcements and local regulations.
