Evolution and Current Status of China's Virtual Currency Regulatory Policies
Since 2013, China's regulatory stance on virtual currencies has been continuously tightening. Initially, the People's Bank of China and other departments issued notices clarifying that Bitcoin does not possess legal tender status. Subsequently, regulatory measures gradually escalated, particularly in September 2021, when ten departments including the People's Bank of China jointly issued a notice comprehensively prohibiting virtual currency trading and speculation activities. The notice explicitly stated that virtual currencies do not have the same legal status as legal tender, related business activities are illegal financial activities, and overseas virtual currency exchanges providing services to Chinese residents via the internet are also deemed illegal.
Since then, China has continued to strengthen its crackdown on virtual currency-related activities. Even in 2025 and 2026, relevant departments have repeatedly reiterated the illegality of virtual currency-related business activities, emphasizing strict prohibition within China and continuous打击 related illegal financial activities. This means that currently, there are no legal virtual currency trading platforms within mainland China.
Major Trading Platforms' Withdrawal and Market Impact
Under strict regulatory policies, several major global virtual currency trading platforms, including Huobi (now HTX), Binance, and OKX, announced their withdrawal from the mainland Chinese market by the end of 2021 and completed the delisting of mainland Chinese users. These platforms have shifted their business focus to international markets to comply with the regulatory requirements of various jurisdictions.
Regulatory authorities prohibit virtual currency trading and speculation primarily based on multiple considerations. Virtual currencies are believed to pose risks of disrupting economic and financial order, fostering gambling, illegal fundraising, fraud, pyramid schemes, money laundering, and other criminal activities. Their anonymity and cross-border nature also make anti-money laundering and other compliance requirements difficult to implement. Furthermore, the high energy consumption of cryptocurrency mining conflicts with China's carbon reduction goals and may be related to strategic considerations for promoting the digital yuan.
Global Market Overview and Risk Warning
Although virtual currency trading is strictly prohibited within mainland China, the global virtual currency market remains active. For example, according to data from April 2025, OKX's asset scale was approximately $17.1 billion, with a 24-hour trading volume of $16.05 billion; Binance's asset scale was approximately $12.85 billion, with a 24-hour trading volume of $19.025 billion; HTX's asset scale was approximately $4.52 billion, with a 24-hour trading volume of $31.075 billion. These figures reflect the performance of overseas platforms globally and are unrelated to the prohibited trading activities within China. Users can view real-time market data and trends for these global markets on platforms like Svmuu.
Despite rumors that China might lift its cryptocurrency ban in the future, as of now, the latest reports from official Chinese sources and mainstream media emphasize continued prohibition and strict regulation. Any attempt to participate in virtual currency trading through unofficial or gray channels carries extremely high legal and financial risks. Investors should fully understand the laws and regulations of their respective jurisdictions and remain vigilant about the high volatility and potential risks of the virtual currency market.
