Overview of Cryptocurrency Regulatory Policies in Mainland China
Since September 2021, mainland China has adopted a comprehensive ban on virtual currency trading and related services. A notice jointly issued by the People's Bank of China (PBOC) and nine other departments explicitly states that all virtual currency-related business activities, including exchanges between fiat currency and virtual currency, exchanges between virtual currencies, acting as a central counterparty for buying and selling virtual currencies, providing information intermediary and pricing services, token issuance financing, and virtual currency-related financial product transactions, are classified as illegal financial activities. Overseas virtual currency exchanges providing services to residents within China via the internet are also subject to this ban.
Regulatory enforcement continued to strengthen between 2025 and 2026. In November 2025, the PBOC reiterated the illegality of virtual currency-related businesses and for the first time explicitly categorized stablecoins as a form of virtual currency, warning of their risks being used for illegal activities such as money laundering, fundraising fraud, and illicit cross-border transfer of funds. On February 6, 2026, the PBOC and seven other departments jointly issued the "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies," which replaced the previous 2021 notice and further tightened regulations. The new regulations explicitly prohibit overseas entities and individuals from illegally providing virtual currency-related services to domestic entities in any form and include Real World Asset (RWA) tokenization businesses within the scope of regulation.
Furthermore, while the draft "Financial Law," for which public comments concluded in April 2026, did not directly clarify the legal status of digital currency, it grants financial regulatory agencies broader "quasi-judicial powers," which will have a profound impact on the inflow and outflow of funds and on-chain transactions in the crypto asset sector. Regulatory agencies are authorized to access property information, communication records, transaction records, and freeze funds suspected of illegal activities.
Legal and Financial Risks for Individuals Participating in Virtual Currency Trading
In mainland China, merely holding cryptocurrencies is not currently considered illegal. However, once trading activities are involved, individuals face significant legal and financial security risks. Regulatory agencies explicitly state that all virtual currency-related business activities are illegal financial activities and will be resolutely suppressed in accordance with the law.
For individuals, occasional virtual currency transactions fall into a legal gray area and are not protected by law. However, high-frequency, large-volume, profitable business-oriented transactions may constitute criminal offenses such as illegal business operations, aiding information network criminal activities, and money laundering. Any domestic personnel assisting overseas virtual currency institutions in their operations or providing marketing promotion and technical support may be held accountable according to law, and if a crime is constituted, criminal liability will be pursued.
Participating in virtual currency trading, especially over-the-counter (OTC) transactions involving RMB deposits and withdrawals, may lead to frozen bank cards and even criminal investigations and sentencing. The virtual currency market itself is highly speculative, with drastic price fluctuations, and in an illegal environment, it lacks legal protection, posing a serious threat to investors' property safety. While OTC transactions superficially offer some anonymity, they also suffer from a lack of transparency, which can easily lead to price manipulation and fraudulent activities.
International Trading Platforms and Access for Mainland Chinese Users
Given mainland China's strict ban on virtual currency trading, there are currently no virtual currency trading platforms legally operating in mainland China. Nevertheless, some international digital asset trading platforms provide services in other global markets, and there are reports that some mainland Chinese users can still access these platforms through specific channels.
These platforms include, but are not limited to:
- OKX: As an international platform with strong performance in the Asian market, it offers spot, futures, DeFi, and other services. As of April 2025, its asset size was approximately $17.1 billion.
- Binance: Considered a leading platform in the global cryptocurrency trading sector, attracting a large number of users. As of April 2025, its asset size was approximately $12.85 billion.
- Bitget: Known for its "one-click copy trading" and "0-fee spot trading" features, with over 25 million users. As of April 2025, its asset size was approximately $60 million.
- Bybit: This platform is renowned for its derivatives trading, serving over 200 countries and regions worldwide. As of April 2025, its asset size was approximately $210 million.
- Kraken: This platform supports trading in various cryptocurrencies. As of May 2026, it supports over 640 cryptocurrencies.
It is important to emphasize that the "availability" of these international platforms in mainland China operates in a gray area under strict regulation, and their operations contradict mainland China's laws and regulations. Mainland Chinese residents who participate in virtual currency trading on overseas platforms through any means face the severe legal and financial security risks mentioned above. Investors must fully understand and assess the relevant risks before engaging in any operations and can verify the latest policies and project information on news platforms such as Svmuu.
