Overview of Cryptocurrency Regulatory Policies 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 and implementing a comprehensive ban nationwide. Subsequently, this ban was further emphasized and refined in November 2025 and February 2026, extending its scope to include emerging areas such as stablecoins and Real World Asset (RWA) tokenization. This means that any entity claiming to offer "user-friendly and reliable TRC platforms" or "TRC software Apps" for cryptocurrency trading within mainland China is operating illegally.
According to regulatory provisions, overseas virtual currency exchanges providing services to residents in China via the internet also constitute illegal financial activities. Any domestic personnel assisting these institutions in their operations, providing marketing promotion, or technical support may face legal liabilities.
Complexity of Personal Holdings and P2P Transactions
Despite the strict prohibition of virtual currency trading activities, as of the end of 2024, Chinese laws and regulations do not explicitly forbid individuals from purchasing and holding cryptocurrencies. As long as the source of funds is legitimate, does not violate foreign exchange control regulations, and does not involve illegal fundraising, fraud, money laundering, or other criminal activities, cryptocurrencies are generally considered a virtual commodity with property attributes.
However, in a stringent regulatory environment, peer-to-peer (P2P) trading activities remain active. A report released by on-chain analytics firm Chainalysis in September 2026 showed that China ranked second globally in "domestic individual wallet-to-wallet transfers." This indicates that some users may still be engaging in transactions through unofficial channels, but such activities face significant legal and financial risks. Users are strongly advised to exercise caution, verify compliance, and adhere to local regulations.
TRON Network and TRC20-USDT
The TRON (TRON) network was founded by Chinese entrepreneur Justin Sun in 2017, focusing on decentralized content sharing and the entertainment industry. Its TRC-20 token standard is widely popular for stablecoin transfers due to its low cost and high throughput. As of May 13, 2026, the circulation of Tether (TRC20-USDT) issued on TRON reached $88.4 billion, making it the second-largest blockchain for Tether issuance, trailing only Ethereum. The TRON network currently boasts over 149 million user accounts and has completed over 5 billion transactions. Its native token, TRX, had a market capitalization of approximately $31.72 billion as of August 2026, ranking eighth among global cryptocurrencies. Users can view real-time prices and related data for TRX on market platforms like Svmuu.
TRC-Compatible Wallets: Storage, Not Trading
While trading platforms are restricted in mainland China, non-custodial wallets used for storing TRC-20 tokens still exist. These wallets allow users to self-custody their private keys and do not involve centralized trading services. It is crucial to emphasize that these wallets only provide asset storage and management functions; they are not trading platforms themselves and cannot circumvent mainland China's virtual currency trading ban. Using these wallets for any virtual currency-related trading activities still carries legal and financial risks that users must bear themselves.
- TronLink: As the most comprehensive TRON wallet, it supports TRX, TRC-10, TRC-20, and TRC-721 tokens, offering features such as staking, voting, resource management, and dApp access.
- Trust Wallet: This is a non-custodial wallet that supports the TRON network and TRC-20 tokens, allowing users to store, send, receive, and manage assets like TRC-20 USDT.
- Gem Wallet: Supports USDT TRC20 and other TRON assets, offering a built-in DEX swap and credit card deposit channels. It is open-source and non-custodial.
- TR.ENERGY: A TRON wallet that allows direct payment of transaction fees with USDT, or using TRX to save on fees, and provides AML screening.
- Others: Ledger Nano X (hardware wallet for long-term storage), MetaMask (multi-chain wallet), Atomic Wallet, Exodus, and others also support TRX and TRC-20 tokens.
Risk Warning
Given mainland China's strict regulatory policies on virtual currency trading, any attempt to engage in virtual currency transactions through unofficial or overseas platforms carries significant legal and financial risks. Users should fully understand and strictly comply with local laws and regulations to avoid participating in any activities that may be deemed illegal financial activities. For the holding and management of crypto assets, it is essential to choose secure and reliable non-custodial wallets and to take sole responsibility for private key custody. In all circumstances, risk prevention should be the primary consideration.
