Overview of Virtual Currency Regulatory Policies in Mainland China
Mainland China’s regulatory stance on virtual currencies is clear and strict. According to the “Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Matters” (“Document No. 42”), jointly issued by eight government agencies—including the People’s Bank of China—on February 6, 2026, business activities related to virtual currencies are explicitly classified as illegal financial activities.The notice strictly prohibits overseas virtual currency exchanges from providing services to residents within China via the internet and emphasizes that no entity or individual, whether domestic or overseas, may issue RMB-pegged stablecoins abroad without the approval of relevant authorities.
Although the holding of cryptocurrency by individuals is legally recognized as “virtual property” and is protected (according to a November 2024 ruling by the Songjiang District Court in Shanghai), all commercial activities related to cryptocurrency—including operating exchanges, providing trading services, and large-scale mining—are considered illegal financial activities.The scope of regulation has also been extended to cover virtual currency business conducted overseas by domestic entities and their controlled overseas entities, reflecting the principle of “long-arm jurisdiction.”
Furthermore, while there is no explicit ban on peer-to-peer (P2P) fiat currency exchanges between individuals, stablecoins have been designated as a new enforcement priority following a coordinated meeting of 13 departments of the People’s Bank of China in November 2025, and the CNY P2P markets on relevant trading platforms are now under regulatory scrutiny.In light of these policies, all virtual currency trading platforms currently operating within mainland China are illegal; therefore, the concept of a “ranking of Chinese virtual currency trading platforms” does not exist.
Overseas Trading Platforms and Risks for Mainland China Users
Under the strict regulatory environment, users in mainland China typically need to use a VPN to access most overseas cryptocurrency exchange websites. The use of VPNs itself exists in a legal gray area.The following is a list, based on publicly available information, of some overseas platforms that users in mainland China may attempt to access through specific methods (typically involving VPNs and P2P trading); however, these activities carry significant legal and operational risks.
- Binance
As a globally renowned cryptocurrency exchange, Binance enjoys high adoption among Chinese-speaking users. Mainland China users may still access its official website and app via VPN and use P2P trading to deposit and withdraw fiat currency. During KYC identity verification, users can select “Chinese nationality” and provide a Chinese resident ID card.However, in December 2021, Binance responded to regulatory policies by removing the CNY trading section and conducting a review of Mainland China users, switching their accounts to “withdrawal-only” mode. Despite this, its spot and derivatives trading volume still accounted for a significant market share in the first quarter of 2026.
- OKX
OKX is also popular among Chinese-speaking users and is regarded as more user-friendly for Chinese speakers, with responsive customer service. Its P2P market was once rated by Datawallet as having the “strongest CNY P2P liquidity,” but P2P trading is currently under regulatory scrutiny.In January 2025, OKX obtained a MiCA license through its Malta hub, granting it access to all 30 countries in the European Economic Area, demonstrating its commitment to global compliance.
- Kraken
In 2025, Kraken began accepting Mainland Chinese passports, second-generation ID cards, and Mainland Chinese mobile phone numbers for identity verification (KYC), and users could directly select “Mainland China” as their country of residence. As of early 2026, some users could access the official website directly from browsers in Mainland China without a VPN, and the platform offered a Simplified Chinese interface.After reaching the intermediate KYC level, users can deposit USDT or USDC on-chain, convert them to USD, and withdraw the funds to a U.S. dollar account in Hong Kong. Although Kraken accepts Mainland China KYC, its operations in Mainland China still violate the People’s Bank of China’s “September 24 Notice,” posing a risk that the platform could be shut down at any time.
- Bitget
Bitget is known for its “one-click copy trading” and “zero-fee spot trading,” with over 25 million users and services covering 120 countries. The platform has established a $300 million protection fund, passed security audits by multiple authoritative institutions such as CertiK, and holds 95% of its assets in cold wallets.
- Bybit
Founded in 2018, Bybit is renowned for its derivatives trading and serves users in over 200 countries. The platform temporarily opened registration to users in mainland China in April 2025.
- HTX (Huobi)
Founded in 2013, HTX underwent a comprehensive upgrade in 2025, now supporting major cryptocurrencies and launching NFT and metaverse-related services.Its C2C network is considered one of its core infrastructure components. Similar to Binance, Huobi also reminded mainland China users in December 2021 to withdraw their account assets and shut down related trading functions.
Regulatory Trends and Risk Warnings
The Chinese government and regulatory authorities maintain a firm stance against virtual currency trading and speculation, viewing such activities as disruptive to economic and financial order, a threat to the public’s financial security, and prone to being exploited for money laundering, fraud, and illegal cross-border fund transfers.Industry experts generally agree that the national regulatory stance on virtual currency policy has become clear, and exchanges will have no choice but to shift their focus to overseas operations in the future. The anonymity, cross-border nature, and detachment from traditional regulatory frameworks of virtual currencies make it difficult to implement compliance requirements such as Know Your Customer (KYC) and anti-money laundering (AML) measures.
For residents of mainland China, participating in virtual currency trading carries extremely high legal and financial risks. Even if overseas platforms accept registrations from mainland Chinese users or provide services in Chinese, their operations within mainland China remain illegal. Users should be fully aware that, should regulatory enforcement tighten, their assets may face the risk of being frozen, becoming inaccessible for withdrawal, or subject to legal liability.Please be sure to comply with the laws and regulations of your jurisdiction and carefully assess the risks.
