Overview of Virtual Currency Regulation in Mainland China: Comprehensive Ban and Risk Warnings
Under the current strict regulatory policies in mainland China, virtual currency over-the-counter (OTC) trading platforms and virtual currency software are completely prohibited. Any activity providing virtual currency-related services within mainland China, whether online or offline, is explicitly identified as illegal financial activity. Therefore, there are no legitimate "virtual currency OTC trading platform rankings" or "Chinese virtual currency software." This article will delve into mainland China's regulatory stance and emphasize the associated risks.
Evolution and Key Points of China's Virtual Currency Regulatory Policy
Mainland China's regulatory stance on virtual currencies has consistently been strict and has continuously strengthened over time:
- Comprehensive Ban in September 2021: The People's Bank of China (PBOC) and nine other departments jointly issued a notice clarifying that virtual currencies do not have legal tender status and prohibiting all virtual currency-related business activities. This includes the exchange between legal tender and virtual currencies, exchange between virtual currencies, buying and selling virtual currencies 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.
- Continued Crackdown in November 2025: The People's Bank of China led a meeting with 13 departments, emphasizing the continued crackdown on virtual currency trading and speculation. This meeting for the first time explicitly defined stablecoins as a form of virtual currency and pointed out their risks such as money laundering, fundraising fraud, and other illicit activities.
- Regulatory Escalation in February 2026: The People's Bank of China, the China Securities Regulatory Commission (CSRC), and six other departments jointly issued a notice reiterating the prohibitive policy on virtual currencies within China. This notice for the first time clarified that, without consent, domestic entities and their controlled overseas entities are not allowed to issue virtual currencies overseas, nor are they allowed to issue RMB-pegged stablecoins overseas.
Despite taking a strict prohibitive stance on virtual currency trading, mainland China still supports blockchain technology itself and encourages its application in the real economy.
Considerations Behind Regulation and Risk Warnings
Chinese regulatory authorities believe that virtual currencies, with their characteristics of anonymity and cross-border nature, are highly susceptible to being used for illegal and criminal activities such as money laundering, fraud, illegal fundraising, pyramid schemes, and illegal cross-border capital transfers, posing a serious threat to national financial security and social stability. Therefore, their circulation and speculation have always been strictly prohibited.
For residents of mainland China, participating in any form of virtual currency trading, whether through domestic or overseas platforms, carries enormous legal and financial risks. Related activities may be deemed illegal financial activities, participants may bear corresponding legal liabilities, and the security of funds cannot be guaranteed.
Overview of Major Global Virtual Currency Trading Platforms (Not Applicable to Mainland China)
While mainland China prohibits virtual currency trading, numerous virtual currency trading platforms exist globally, providing services to international users. These platforms include:
- Binance: One of the world's largest cryptocurrency exchanges, offering a wide range of trading pairs and financial services.
- OKX: A globally renowned digital currency trading platform, offering various trading products such as spot, futures, and options.
- Bybit: A global digital asset trading service platform, known for its derivatives trading.
- Bitget: One of the fastest-growing cryptocurrency trading platforms globally in terms of user numbers, offering spot and futures trading.
- Coinbase: One of the largest cryptocurrency exchanges in the United States, with services covering multiple countries and regions worldwide.
- HTX (formerly Huobi): Originally established in China, it later moved its headquarters to Singapore and continues to provide services to the international market.
- Gate.io: A long-established global digital asset trading platform.
- Kraken: Founded in 2011, it is one of the earliest crypto exchanges in the industry, known for its compliance.
Important Note: None of the aforementioned global trading platforms are permitted to operate within mainland China or provide virtual currency trading services to mainland Chinese residents. Mainland Chinese residents participating in virtual currency trading through any channel are engaging in illegal financial activities and must bear all legal and financial risks themselves.
