Legal Status and Risks of Virtual Currency Trading in Mainland China
As of September 2026, Mainland China continues to maintain a comprehensive ban on virtual currency trading activities. The People's Bank of China and other departments have explicitly classified all virtual currency-related business activities as illegal financial activities since September 2021, strictly prohibiting them without exception. This means that within Mainland China, there are no officially recognized or legally permitted platforms for Bitcoin purchases or trading. Overseas virtual currency exchanges providing services to residents in China via the internet are also prohibited, and relevant departments will strengthen monitoring and enforcement.
Nevertheless, a ruling by the Shanghai Songjiang Court in November 2024 confirmed that cryptocurrencies are recognized as "virtual property" under Chinese law, and individual ownership is protected. However, this does not equate to permission for trading. Peer-to-peer (P2P) fiat currency exchanges between individuals operate in a regulatory gray area, exposing users to high risks such as frozen bank cards, especially if the counterparty is involved in illegal activities. In February and September 2026, eight departments, including the People's Bank of China, reiterated that virtual currencies such as Bitcoin, Ether, and USDT do not have legal tender status and cannot circulate as currency. They emphasized that conducting virtual currency-related businesses within China constitutes illegal financial activity and will be resolutely suppressed according to law.
For users in Mainland China, accessing overseas exchanges typically requires the use of a VPN. However, according to the Cybersecurity Law, VPNs are theoretically required to operate with a license. The Chinese government firmly maintains its prohibitive policy on virtual currency trading, believing it disrupts economic and financial order and may foster illegal activities such as gambling, illegal fundraising, fraud, and money laundering. The digital yuan (e-CNY) is considered the only legal digital currency.
Overview of Major Global Cryptocurrency Exchanges
Globally, several large cryptocurrency exchanges dominate due to their extensive services, high liquidity, and user base. Below are some prominent mainstream exchanges as of September 2026, based on factors such as market share and user scale:
- Binance: As one of the world's largest cryptocurrency exchanges, Binance offers a comprehensive ecosystem of services including spot trading, futures, staking, and an NFT marketplace. As of Q1 2026, its registered users have exceeded 240 million.
- OKX: With its extensive experience in the Asian market and Web3 wallet technology, OKX has become one of the leading global platforms. It provides low-latency derivatives matching services and has a built-in Web3 wallet.
- Coinbase: Known for its extreme compliance, clean user interface, and comprehensive beginner's guide, it is particularly suitable for secure long-term asset storage.
- Bybit: Established in 2018, Bybit offers diverse cryptocurrency trading and related services, including copy trading and margin trading.
- Kraken: This platform is known for its emphasis on compliance. Notably, as of May 2026, Kraken accepted Mainland Chinese passports and second-generation ID cards for KYC and provided simplified Chinese support.
- Upbit: A well-known South Korean cryptocurrency exchange with significant influence in the Asian market.
- KuCoin: Founded in 2017, KuCoin supports trading for over 700 cryptocurrencies and attracts users with its low trading fees.
- Bitget: As of August 2025, Bitget's ecosystem user base has exceeded 120 million, and its futures trading volume consistently ranks among the top five globally.
- Gate.io: Offers a wide selection of cryptocurrencies and trading services.
- HTX (formerly Huobi): Headquartered in Singapore, HTX has offices in multiple locations worldwide and is a significant participant in the cryptocurrency market.
In addition, platforms such as eToro, BingX, Bitfinex, and MEXC also hold a place in the global cryptocurrency market, each offering specialized services like social trading and professional-grade trading tools.
Global Regulatory Trends and Compliance
As the cryptocurrency market continues to evolve, regulatory frameworks worldwide are gradually improving. The implementation of policy frameworks such as the EU's MiCA regulation and Hong Kong's new virtual asset rules signifies that compliance has become a necessary condition for the survival and development of cryptocurrency exchanges. The revised regulatory standards for virtual asset service providers by the Financial Action Task Force (FATF), particularly the "Travel Rule" requirements, mean that virtual asset transfers between compliant exchanges will require sharing originator and beneficiary information, further promoting transparency and compliance in the industry.
The information on platforms mentioned in this article is subject to change based on each exchange's listing and delisting dynamics. Please refer to the official announcements of the exchanges.
