Overview of Virtual Currency Regulation in Mainland China
Since September 2021, the People's Bank of China (PBOC) and nine other departments jointly issued a notice explicitly defining virtual currency-related business activities as illegal financial activities. This ban covers various forms of cryptocurrency activities, including trading and mining. Subsequently, in December 2025, the Chinese government further clarified that stablecoins would be included in the scope of virtual currencies, meaning that domestic trading of stablecoins such as USDT (Tether), whether through exchanges or over-the-counter (OTC) transactions, is considered illegal.
According to the laws and regulations of Mainland China, overseas virtual currency exchanges providing services to residents within China via the internet are also prohibited. Relevant departments continue to strengthen monitoring and crackdowns on such activities. Therefore, within Mainland China, there is no legal software or platform that can be used for trading USDT, nor is there any so-called "safest" domestic USDT platform App.
Legal Risks of USDT Trading in Mainland China
Mainland Chinese residents participating in USDT trading face severe legal risks. Under current Chinese law, such activities may constitute criminal offenses such as illegal business operations and aiding criminal activities on information networks. Furthermore, personal bank cards used for trading may be frozen due to suspected illegal fund transfers, posing a direct threat to personal asset security.
Following the ban, several major international cryptocurrency exchanges, including Binance, OKX, and HTX, announced by the end of 2021 that they would delist Mainland Chinese users, switching relevant accounts to withdrawal-only mode and removing RMB trading pairs. Although some international platforms may still be technically accessible to Chinese users, providing services to residents within China is itself illegal under Chinese law, and users conducting transactions through these channels face extremely high risks.
USDT's Application and Risks in Blockchain Networks
As one of the most widely circulated stablecoins globally, USDT plays a crucial role in the cryptocurrency ecosystem. For example, over 50% of global USDT exists on the Tron network, and the TRC-20 version of USDT is often used for P2P transactions, international transfers, and USD savings. However, its anonymity and convenience also make it susceptible to exploitation by illicit actors. According to historical data, the number of criminal cases associated with USDT significantly increased in 2020, indicating a rise in its use for illegal activities.
Readers who wish to learn about the latest USDT market trends and related information can check professional market information platforms such as Svmuu. However, please note that this information does not constitute any advice for trading in Mainland China, and trading activities themselves carry significant legal risks.
Views from Regulators and Market Participants
The Chinese government and regulatory bodies explicitly prohibit virtual currency trading, believing it disrupts economic and financial order and may foster illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering, while also attempting to prevent capital outflow. International cryptocurrency exchanges, while complying with local regulatory policies, adjust their service scope. Legal experts also call for strengthening crackdowns on underground banks and token financing trading platforms while clarifying the legal status of virtual assets.
Despite the high risks, some Mainland Chinese users still attempt to trade USDT through various means and are concerned about how to avoid bank card freezes. However, these attempts all fall into a legal gray area and are accompanied by immense uncertainty and risk.
