Comprehensive Ban on Virtual Currency Trading in Mainland China
Since September 2021, mainland China has implemented a strict and comprehensive ban on virtual currency trading and related business activities. The People's Bank of China and nine other ministries and commissions jointly issued a notice, explicitly stating that all virtual currency-related businesses, including the exchange between legal tender and virtual currencies, the exchange between virtual currencies, and the buying and selling of virtual currencies as a central counterparty, are illegal financial activities and are strictly prohibited. Subsequently, regulatory authorities have continuously strengthened their crackdown. For example, in August 2024, the Supreme People's Court and the Supreme People's Procuratorate explicitly included transferring criminal proceeds through "virtual asset" transactions as a new type of money laundering. In February 2026, the People's Bank of China and seven other departments reiterated the ban and emphasized that enterprise registration names and business scopes must not contain terms such as "virtual currency."
Under this strict regulatory backdrop, there are no legal and compliant "virtual currency trading platforms" or "virtual currency trading software apps" within mainland China. Any act of providing virtual currency trading services within China is considered an illegal financial activity.
International Platforms and Potential Risks
By the end of 2021, several major international cryptocurrency exchanges, including HTX, Binance, and OKX, had announced the delisting of mainland Chinese users and the removal of RMB trading zones, shifting their business focus entirely to overseas markets. Nevertheless, there are still discussions in the market about some international exchanges (such as Binance, OKX, Bybit, Gate.io, Bitget, KuCoin, Kraken, etc.) being accessed by some Chinese users through specific methods (such as using VPNs, opening registration with Chinese ID cards for overseas Chinese communities, etc.). These platforms usually offer Chinese language support, but it must be emphasized that such attempts to access and trade carry legal and financial risks that users must bear themselves.
The Chinese legal community generally believes that although virtual currencies themselves may be recognized as having property attributes in judicial practice, virtual currency trading activities, especially those that violate public order and good morals or are unauthorized, may be deemed invalid civil legal acts, with losses arising therefrom borne by the participants themselves. Furthermore, participating in virtual currency transactions, especially those involving illegal activities such as money laundering and fraud, may lead to frozen bank cards, detention, and even criminal liability. Before engaging in any transactions, investors should verify the latest prices and project information on market data platforms such as Svmuu and fully understand and assess potential legal and financial risks.
Considerations Behind the Regulation
The Chinese government and regulatory agencies believe that virtual currency trading and speculation disrupt economic and financial order, foster illegal criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering, pose a threat to financial stability and the national currency, and consume a large amount of energy. Therefore, a comprehensive ban on virtual currency trading and mining is an important measure to maintain financial stability, prevent financial risks, and combat illegal criminal activities. At the same time, the Chinese government is actively promoting the research and application of the digital RMB.
