Overview of Virtual Currency Trading Platforms in Mainland China
Since 2021, mainland China has adopted a policy of comprehensive prohibition on virtual currency-related businesses. This means that within the territory of the People's Republic of China, there are no "regular" or legally operating virtual currency trading platforms or apps. All virtual currency-related business activities, including but not limited to the exchange between fiat currency and virtual currency, exchanges between virtual currencies, and providing virtual currency trading services, are explicitly identified as illegal financial activities.
Mainland China's Comprehensive Ban on Virtual Currencies
In September 2021, the People's Bank of China, in conjunction with the Cyberspace Administration of China, the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and other ten departments, jointly issued a notice explicitly stating that virtual currency-related business activities are illegal financial activities and are strictly prohibited within the country. The notice also specifically emphasized that overseas virtual currency exchanges providing services to Chinese residents via the internet are also considered illegal financial activities. This policy framework established the regulatory tone for virtual currency activities in mainland China.
Continued Strengthening of Regulatory Policies and Market Impact
Subsequently, mainland China's regulatory authorities continued to intensify their crackdown on virtual currencies. For example, in November 2025, the People's Bank of China led 13 departments in reiterating the illegality of virtual currency-related businesses and for the first time clearly defined stablecoins. In February 2026, the People's Bank of China and 8 other departments jointly issued another document emphasizing the illegal nature of virtual currency-related business activities. These measures aim to safeguard national financial security and social stability, and prevent risks such as money laundering, illegal fundraising, and fraud that virtual currencies may bring. Affected by the September 2021 ban, prices of major cryptocurrencies like Bitcoin experienced significant declines.
Mining Ban and Exchange Exits
In addition to the trading ban, mainland China also completely prohibited Bitcoin mining activities in 2021, which led to significant changes in the global Bitcoin hashrate structure. By the end of the same year, several major virtual currency trading platforms, including HTX, Binance, and OKEx, announced their withdrawal from the mainland Chinese market in response to regulatory requirements, closing deposit and trading functions for mainland Chinese users and switching accounts to a withdrawal-only mode.
Legal Attributes of Virtual Currencies and Trading Risks
According to judicial practice in mainland China, courts generally consider cryptocurrencies to be virtual property, and merely holding virtual currencies personally is not illegal. However, after the 2021 ban, courts have become more cautious in adjudicating the legality of cryptocurrency transactions, ruling in most cases that cryptocurrency trading activities are not protected by law, and even directly dismissing relevant lawsuits. This means that once involved in virtual currency trading activities, legitimate rights and interests will be difficult to protect by law, and legal accountability may be faced.
Overseas Platforms and Compliance Challenges
Despite mainland China's strict prohibition on virtual currency trading, some overseas virtual currency trading platforms may still provide services to mainland Chinese residents via the internet. However, according to mainland Chinese laws and regulations, overseas institutions providing such services to mainland China are considered illegal. Any domestic personnel who assist in the operation of these institutions or provide marketing, promotion, or technical support may be held legally accountable. For mainland Chinese residents, accessing and using overseas platforms for virtual currency trading through unofficial channels not only faces risks such as fund security and platform exit scams but may also violate local laws and regulations and incur corresponding legal liabilities.
Risk Warning
Given mainland China's clear prohibition and continuous high-pressure regulation of virtual currency trading activities, mainland Chinese residents participating in any form of virtual currency trading face extremely high legal and financial risks. All readers are advised to strictly comply with the laws and regulations of their respective jurisdictions, stay away from illegal financial activities, and protect their property safety.
