Regulatory Status of Virtual Currency Trading Platforms and Apps in Mainland China
Since the People's Bank of China and nine other departments jointly issued a notice in September 2021, mainland China has adopted a strict stance of comprehensive prohibition on virtual currency-related business activities. This policy explicitly states that all virtual currency-related businesses, including exchanges between legal tender and virtual currencies, exchanges between virtual currencies, acting as central counterparties for buying and selling virtual currencies, providing information intermediation and pricing services, token issuance financing, and virtual currency-related financial product transactions, are illegal financial activities and are strictly prohibited.
It is worth noting that overseas virtual currency exchanges providing services to Chinese residents via the internet are also deemed illegal financial activities. This means that regardless of where a platform is registered, if its services target mainland Chinese residents, it violates mainland China's regulatory provisions.
Continued Strengthening of Regulatory Policies and Key Developments
- Comprehensive Ban in September 2021: The People's Bank of China and nine other departments jointly issued a notice, explicitly defining virtual currency-related businesses as illegal financial activities and emphasizing that overseas exchanges providing services to domestic residents are also illegal.
- Major Exchange Exits: In response to mainland China's regulatory policies, major virtual currency trading platforms including HTX, Binance, and OKX announced their withdrawal from the mainland Chinese market before the end of 2021, ceasing to provide services to mainland Chinese users and liquidating account assets.
- Regulatory Reiteration and Expansion in 2025-2026: In November 2025, the People's Bank of China led multiple departments in reiterating the illegality of virtual currency-related businesses and for the first time explicitly categorized stablecoins as virtual currencies. In February 2026, eight departments jointly issued another document, emphasizing that any domestic or overseas entity or individual is prohibited from issuing yuan-pegged stablecoins offshore, and prohibiting enterprises and individual businesses from including "virtual currency," "cryptocurrency," or similar terms in their registered names and business scopes.
- Continued Crackdown on "Mining" Activities: Mainland China continues to crack down on virtual currency "mining" activities, comprehensively shutting down existing projects and strictly prohibiting new ones.
Promotion of Digital Yuan and Market Impact
While comprehensively banning virtual currency transactions, the Chinese government has vigorously promoted the digital yuan (e-CNY) as the only legal digital currency. As of the end of 2024, the transaction volume of the digital yuan has reached 200 billion RMB, demonstrating its widespread application and popularity under official promotion.
Strict regulatory policies have achieved significant results in curbing illegal financial activities. For example, cryptocurrency-related fraud cases in mainland China significantly decreased by 70% in 2025.
Risk Warning: Potential Legal and Asset Security Risks of Bypassing Regulations
Facing strict prohibitions, there are no legal channels for virtual currency transactions within mainland China. Although some overseas platforms may technically still allow mainland Chinese users to register and trade through specific methods (such as using VPNs, P2P transactions, overseas accounts, etc.), these operations are illegal in mainland China and carry extremely high legal and asset security risks.
The Chinese government and regulatory authorities have clearly stated that virtual currencies do not possess the same legal status as legal tender, and their trading and speculation disrupt economic and financial order, giving rise to illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering, seriously endangering the property safety of the public. Therefore, investing in virtual currencies and related financial products, if it violates public order and good morals, will render the relevant civil legal acts invalid, and any losses arising therefrom shall be borne by the individual; those suspected of disrupting financial order and endangering financial security will be investigated and dealt with by relevant departments in accordance with the law.
All users are advised to strictly abide by local laws and regulations and refrain from attempting to participate in virtual currency transactions through unofficial or illegal channels to avoid unnecessary legal risks and asset losses.
