Overview of Cryptocurrency Regulation in Mainland China
Since September 2017, regulatory policies on cryptocurrencies in mainland China have been continuously tightened. The People's Bank of China and other departments jointly issued a notice, comprehensively banning Initial Coin Offerings (ICOs) and shutting down all domestic cryptocurrency exchanges. Subsequently, all virtual currency trading activities, including Bitcoin, as well as the provision of services by overseas virtual currency exchanges to residents within China, have been explicitly identified as illegal financial activities.
In September 2021, this ban was further strengthened, explicitly stating that engaging in cryptocurrency trading, lending, and derivative services would face legal prosecution. Concurrently, China also intensified its crackdown on Bitcoin mining activities between May and June 2021, leading to the closure of numerous mining farms.
Legal Definition of Personal Holdings and Transactions
Despite the ban on trading activities, Chinese law defines the nature of personal cryptocurrency holdings. As of November 2024, a ruling by the Shanghai Songjiang Court confirmed that cryptocurrencies are recognized as "virtual property" under Chinese law, and personal holdings are protected by law. However, this definition does not imply the legalization of trading activities. Buying, selling, or trading cryptocurrencies remains prohibited, and banks and payment platforms monitor and block cryptocurrency-related transactions.
Promotion of the Digital Yuan
In contrast to the strict restrictions on decentralized cryptocurrencies, the Chinese government is actively promoting its central bank digital currency (e-CNY), also known as the Digital Yuan. As a legal digital currency, the Digital Yuan aims to provide secure and convenient payment methods. Starting from January 1, 2026, interest will begin to accrue on Digital Yuan wallet balances, marking a further enhancement of its functionality. As of the end of November 2025, the Digital Yuan has cumulatively processed 3.48 billion transactions, with a transaction volume of 16.7 trillion RMB, and 230 million individual wallets opened.
Risk Warnings and Compliance Advice
Given the strict regulation of cryptocurrency trading in mainland China, there are currently no "official" or "legal" Bitcoin trading platform apps available for residents within the country. Any platform claiming to offer such services may be involved in illegal activities, and users participating in them will face significant legal and financial risks.
While some overseas platforms may be accessed by mainland Chinese users through unofficial channels, such behavior itself carries extremely high risks. Users may face risks such as frozen bank cards, financial losses, personal information leakage, and even legal prosecution. Therefore, all users are advised to strictly comply with the laws and regulations of their respective jurisdictions and refrain from attempting to participate in virtual currency transactions through non-compliant channels.
