Virtual Currency Regulatory Policies and Current Status in Mainland China
Mainland China's regulatory authorities have adopted a strict prohibition stance on virtual currency transactions and related activities, explicitly stating that there are no "regular" or "legal" virtual currency trading platforms within its borders. Since September 2021, the People's Bank of China and nine other departments jointly issued a notice emphasizing that virtual currencies do not possess the legal status of fiat currency, and all virtual currency-related business activities are classified as illegal financial activities and are to be banned according to law. This prohibition also applies to overseas virtual currency exchanges providing services to residents in mainland China via the internet.
On February 6, 2026, the People's Bank of China and seven other departments once again issued the "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies and Other Matters," reiterating the illegal nature of virtual currency-related business activities. For the first time, it explicitly stipulated that, without the consent of relevant departments, domestic entities and their controlled overseas entities are not allowed to issue virtual currencies overseas, and overseas units and individuals are not allowed to illegally provide virtual currency-related services to domestic entities in any form.
Affected by this policy, major cryptocurrency trading platforms, including Binance, OKX, and HTX, successively announced their withdrawal from the mainland Chinese market in 2021, ceasing new user registrations and orderly liquidating existing users or restricting their trading functions.
The Chinese government believes that virtual currency trading and speculation activities not only disrupt economic and financial order but may also foster illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering, as well as pose financial risks and energy consumption issues.
Overview of Major Global Virtual Currency Trading Platforms
Despite the prohibition of virtual currency trading in mainland China, numerous well-known virtual currency trading platforms remain active globally. Below are some of the platforms that hold significant positions in the global market. However, please note that residents of mainland China using these platforms do so at their own legal risk:
- Binance: As one of the leading cryptocurrency exchanges by trading volume globally, Binance supports trading a large number of digital assets, offering spot, futures, wealth management, and Web3 services with high trading depth.
- OKX: OKX is another globally renowned digital asset trading platform, particularly with a high market share in the derivatives trading market. It offers diverse products such as crypto-to-crypto trading, margin, options, delivery and perpetual contracts, DEX trading, and DeFi mining.
- Bybit: Bybit is known for its derivatives trading services, offering a user-friendly interface and top-tier liquidity.
- Bitget: Bitget has attracted a large number of users with its "one-click copy trading" feature and low-fee strategy for spot trading, with its user base exceeding 25 million in 2025.
- HTX: As an established exchange, HTX offers trading of mainstream cryptocurrencies and actively expands into NFT and metaverse-related services.
- Coinbase: Coinbase is one of the major cryptocurrency exchanges in the United States, serving over 100 countries worldwide, and has become the first crypto company to be included in the S&P 500 index.
Risks and Challenges for Mainland Chinese Users Using Overseas Platforms
For residents of mainland China, even if overseas platforms technically allow registration or access, participating in virtual currency trading activities still entails multiple risks:
- Legal Risks: Engaging in virtual currency transactions in mainland China is considered an illegal financial activity and is not protected by law. In the event of a dispute, users find it difficult to seek legal redress and may even face administrative penalties or criminal liability.
- Access Restrictions: Most overseas trading platforms are not directly accessible in mainland China. Users typically need to rely on tools such as Virtual Private Networks (VPNs) to bypass network restrictions, which itself carries certain technical and security risks.
- Fiat Currency Deposit and Withdrawal Risks: Due to regulatory restrictions, mainland Chinese users cannot directly exchange RMB for virtual currencies through official financial institutions like banks. While some users may conduct transactions through C2C (peer-to-peer) markets, this carries risks such as frozen bank cards, unclear sources of funds, or encountering abnormal funds, which could lead to property losses.
- KYC Verification Compliance: Some platforms may accept mainland Chinese identification for KYC (Know Your Customer) verification, but this does not imply that trading in mainland China is legal. Users still need to ensure their actions comply with local laws and regulations.
