Overview of Virtual Currency Trading Regulation in Mainland China
Since September 2021, the People's Bank of China and nine other departments jointly issued a notice clarifying that virtual currencies do not have the same legal status as legal tender, and any business activities related to virtual currencies are deemed illegal. This policy covers situations where overseas virtual currency exchanges provide services to residents within China via the internet, and emphasizes that engaging in illegal financial activities will lead to criminal liability.
In February 2026, the People's Bank of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the National Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange—eight departments in total—once again jointly issued the "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies," further reiterating that virtual currency-related business activities are illegal financial activities and are strictly prohibited within China. This notice also stipulated for the first time that, without the consent of relevant departments, no domestic or overseas entity or individual may issue RMB-pegged stablecoins overseas, nor may domestic entities and their controlled overseas entities issue virtual currencies overseas. Furthermore, the registered names and business scopes of enterprises and individual businesses must not contain terms or content such as "virtual currency," "virtual asset," or "cryptocurrency."
This means that virtual currency trading, speculation, settlement services, and related financial activities within mainland China are strictly prohibited. While merely holding virtual currencies like Bitcoin is not considered illegal, any activities involving trading, exchange, or financing may cross legal red lines, posing extremely high legal and financial risks.
Overview of Major Global Virtual Currency Trading Platforms
Globally, there are numerous virtual currency trading platforms. As of April 2025, CoinMarketCap statistics show that the number of global virtual currency exchanges has exceeded 800. These platforms provide diverse trading services for investors in different countries and regions. Below are some platforms with high global recognition and user bases:
- Binance: As one of the world's leading cryptocurrency exchanges, Binance is known for its wide range of trading pairs, relatively low transaction fees, and strong international operational capabilities.
- OKX: OKX also holds a significant position in the global market, excelling in asset security, trading depth, and user experience, particularly in the field of derivatives trading.
- Kraken: This platform is renowned for its strict compliance and security, supporting multiple fiat currency deposits and withdrawals, and offering spot trading services.
- KuCoin: As of 2025, KuCoin has served users in over 220 countries and regions worldwide, with its futures and lending services being core competencies.
- Bitget: As an emerging trading platform, Bitget focuses on derivatives trading and copy trading.
- Bybit: Bybit also attracts users with its derivatives trading services and lower transaction fees.
- Gate.io: This platform offers a rich selection of cryptocurrencies and diversified trading products.
It is important to emphasize that the service scope and specific functions of the aforementioned platforms vary depending on the regulatory policies of different countries and regions. When choosing and using any trading platform, users must first confirm whether the relevant activities are permitted by the laws and regulations of their jurisdiction and strictly adhere to the platform's terms of use. For related developments and platform information, please pay attention to Svmuu's ongoing reports.
Risk Warning for Participating in Virtual Currency Trading
Given the complexity and volatility of the virtual currency market, as well as the differences in regulatory policies across countries, participating in virtual currency trading involves multiple risks:
- Legal and Compliance Risks: In jurisdictions where virtual currency trading is prohibited (such as mainland China), engaging in related activities may lead to legal penalties, including fines and even criminal liability.
- Market Volatility Risk: Virtual currency prices are highly volatile, which can lead to rapid loss of investment principal.
- Fund Security Risk: Trading platforms may face risks such as hacker attacks, poor operations, or even exit scams, leading to loss of user assets.
- Technical Risks: Technical issues such as improper private key management or smart contract vulnerabilities can also lead to asset loss.
- Fraud Risk: The virtual currency sector contains numerous fraudulent projects and Ponzi schemes that lure investors with promises of high returns.
Therefore, investors must conduct thorough market research and risk assessment, and consult professional legal and financial advice before making any trading decisions, to ensure their actions comply with local laws and regulations.
