Cryptocurrency Regulatory Landscape in Mainland China
Since 2017, Mainland China has progressively tightened its regulatory policies on virtual currencies. The Chinese government has explicitly banned Initial Coin Offerings (ICOs) and the operation of domestic cryptocurrency exchanges. In 2021, this prohibition was further expanded to include cryptocurrency mining and all related trading activities. In September 2021, ten government departments, including the People's Bank of China (PBOC), jointly issued a notice explicitly classifying virtual currency-related business activities (including exchange services and intermediation for transactions) as illegal financial activities. Furthermore, overseas virtual currency exchanges providing services to Chinese residents via the internet were also deemed illegal.
Despite the legal prohibition of cryptocurrency exchanges and related businesses, it is not illegal for individual residents in Mainland China to hold virtual currencies such as Bitcoin, and peer-to-peer (P2P) transactions have not been explicitly banned. However, these activities are not protected by law and carry high risks. As of October 2026, the People's Bank of China continues to reiterate virtual currency regulatory requirements, prohibiting related businesses and stablecoins pegged to the RMB, and consistently warns the public about virtual currency investment scams. In November 2025, the People's Bank of China led a meeting with 13 departments to establish a joint crackdown system on the virtual currency market and for the first time clearly defined stablecoins and their risks.
Market rumors once suggested that China might lift its cryptocurrency ban in Q4 2024, but these reports lacked official confirmation, and experts generally believe that a significant relaxation of regulations is unlikely in the short term. Despite strict prohibitions, some Chinese users still participate in cryptocurrency trading through overseas exchanges and underground markets.
Analysis of Exchange Tokens
Exchange tokens are native tokens or platform points issued by centralized cryptocurrency trading platforms. They play multiple roles within the platform ecosystem, aiming to enhance user engagement and promote platform development.
Functions of Exchange Tokens
- Transaction Fee Discounts: Users holding exchange tokens typically enjoy discounts on trading fees.
- Participation in Profit Sharing and Buybacks: Some platforms regularly use a portion of their profits to buy back and burn exchange tokens, or distribute profits to holders, to reduce circulating supply and increase token value.
- Voting for Listings and Governance: Exchange token holders may have voting rights for new project listings or participate in the platform's governance and decision-making processes.
- Participation in New Projects: Many platforms allow exchange token holders priority access to new projects launched by the platform (e.g., IEOs, Launchpads).
Overview of Mainstream Exchange Tokens
There are various mainstream exchange tokens in the market, each with distinct characteristics and ecosystems:
- BNB: As Binance's exchange token, BNB has achieved 100% full circulation with no plans for future issuance. Holders can participate in new project mining on Binance Launchpad and other initiatives. BNB's underlying BNB Smart Chain (BSC), an EVM-compatible chain, boasts a robust DApp ecosystem and low transaction fees.
- OKB: OKX's exchange token. OKX's Web3 Wallet has a prominent market share, and the platform operates stably overall.
- BGB: Bitget's exchange token. Bitget performs well in futures trading volume, and BGB's relatively low market capitalization is seen by some market observers as having growth potential.
- MX: MEXC's exchange token. MEXC is known for offering a wide variety of altcoin trading pairs.
- GT: Gate.io's exchange token.
- HTX: HTX (formerly Huobi)'s exchange token, previously known as HT.
- Bybit Exchange Token: A digital currency issued by the Bybit exchange. Holders can enjoy transaction fee discounts, VIP membership benefits, and participate in platform governance.
The value of exchange tokens is typically closely tied to the business development, user base, and market performance of their respective trading platforms. Investors considering exchange tokens should fully understand the underlying platform's strength and market risks.
