Current State of Virtual Currency Regulation in Mainland China: No "Legitimate Platforms"
Regarding the topic of "legitimate virtual currency trading platforms in China" and "platforms for selling coins," it must be clearly stated that there are no virtual currency trading platforms officially recognized or considered "legitimate" in mainland China. The Chinese government has consistently adopted a strict prohibition policy on virtual currency trading and related activities, continuously strengthening regulation to prevent financial risks and maintain social stability.
Evolution of Regulatory Policies and Key Points
China's regulatory history concerning virtual currencies dates back to risk warnings in 2013, followed by a complete ban on Initial Coin Offerings (ICOs) and the closure of domestic exchanges in 2017. In recent years, regulatory efforts have further intensified, forming a comprehensive prohibition policy framework:
- Comprehensive Ban on Virtual Currency-Related Businesses (September 2021): The People's Bank of China and nine other departments jointly issued a notice clarifying that virtual currencies such as Bitcoin, Ether, and USDT do not have legal tender status, and engaging in virtual currency-related business activities within China constitutes illegal financial activity, which is strictly prohibited. This includes exchanges between fiat currency and virtual currency, exchanges between virtual currencies, acting as a central counterparty for virtual currency trading, providing information intermediation and pricing services, token issuance financing, and virtual currency-related financial product trading. Overseas virtual currency exchanges providing services to Chinese residents via the internet are also considered illegal financial activities, and those involved will face criminal liability.
- Reiteration of Prohibition Policy and Enhanced Regulation (February 2026): The People's Bank of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the National Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly issued the "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies" (Document No. 42), reiterating the domestic prohibition policy on virtual currency-related business activities, clarifying that they are illegal financial activities, strictly prohibiting them, and resolutely shutting them down according to law.
- Prohibition of Overseas Token Issuance and Stablecoins (February 2026): The new regulations for the first time explicitly state that domestic entities and their controlled overseas entities are not allowed to issue virtual currencies overseas without legal and regulatory approval from relevant departments. Any domestic or overseas unit or individual is prohibited from issuing stablecoins pegged to the RMB overseas, in order to safeguard monetary sovereignty.
- Continued Crackdown on "Mining" Activities (February 2026): The new regulations reiterate the domestic prohibition policy on virtual currency "mining," with the National Development and Reform Commission taking the lead in strict control, comprehensively investigating and shutting down existing projects, strictly prohibiting new projects, and forbidding "mining machine" manufacturers from providing various services such as "mining machine" sales within China.
- RWA Tokenization Regulation (February 2026): The new regulations for the first time incorporate Real World Asset (RWA) tokenization into a systematic regulatory framework. Engaging in RWA tokenization activities and related intermediary and information technology services within China is prohibited. For cross-border aspects, overseas RWA businesses registered with the China Securities Regulatory Commission and subject to mainland Chinese regulation may proceed under certain conditions, but this is limited to specific institutional investors and not open to the domestic public or retail investors.
Regulatory Authorities' Stance and Risk Warnings
The Chinese government and regulatory bodies (such as the People's Bank of China, the National Development and Reform Commission, the Ministry of Public Security, the China Securities Regulatory Commission, etc.) believe that virtual currencies do not possess legal tender status and should not and cannot circulate as currency in the market. Virtual currency trading and speculation activities disrupt economic and financial order, give rise to illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering, posing serious negative impacts on financial stability and social order. Therefore, a prohibitive policy is maintained for virtual currency-related business activities, which are strictly forbidden within China.
Financial institutions and internet companies are required to strictly implement regulatory provisions and must not provide account opening, registration, trading, clearing, settlement, or other products or services for virtual currency-related activities. Domestic individuals and enterprises participating in virtual currency trading and speculation activities, or assisting overseas illegal platforms, may face legal liabilities, and those constituting a crime will be held criminally responsible. For example, after the People's Bank of China issued a comprehensive prohibition notice in September 2021, Bitcoin prices experienced a short-term sharp decline.
Given the strict regulatory policies mentioned above, residents of mainland China should be fully aware of the legal and financial risks involved in participating in virtual currency transactions. Any virtual currency trading platform or coin selling channel that claims to operate "legitimately" in mainland China is inconsistent with the facts and may involve illegal financial activities.
