Current Policy and Compliance Status Regarding Virtual Currency Transactions in Mainland China
According to the “Notice on Further Preventing and Addressing Risks Associated with Virtual Currency Trading and Speculation” (commonly known as the “September 24 Notice”) issued in September 2021 by the People’s Bank of China and nine other ministries and commissions, virtual currencies do not have the same legal status as fiat currency.Within China, it is prohibited to conduct exchanges between fiat currency and virtual currencies, exchanges between different virtual currencies, the trading of virtual currencies as a central counterparty, and other virtual currency-related businesses. Furthermore, overseas virtual currency exchanges providing services to residents within China via the internet are also considered illegal financial activities. Therefore, there are no legitimate virtual currency trading platforms within China that are protected by Chinese law or hold a Chinese license.
The Nature and Evolution of the “Top Ten Domestic Bitcoin Trading Apps”
The “Top Ten Domestic Bitcoin Trading Platforms” or “Domestic Bitcoin Trading Software Rankings” circulating in the market do not actually refer to legitimate institutions established or operating within China. Rather, they refer to overseas cryptocurrency trading applications with strong Chinese ties, high global liquidity, or those that were widely used by domestic investors in the early days.To comply with domestic regulatory policies, these mainstream platforms gradually phased out their existing users in mainland China by the end of 2021 and shifted their focus entirely to compliant overseas markets, with both their servers and business entities now located abroad.
Overview of Major Overseas Cryptocurrency Platforms and Their Backgrounds
Throughout the history of cryptocurrency, some platforms—either founded by Chinese individuals in the early days or well-known within the Chinese community—have gradually completed their globalization and compliance transformations. These platforms include:
- OKX: A globally renowned cryptocurrency trading and Web3 ecosystem platform offering multi-currency spot and derivatives trading, with its operating entity located overseas.
- Binance: One of the world’s largest cryptocurrency trading platforms by trading volume, supporting a wide range of digital asset spot and futures services.
- HTX (formerly Huobi): A long-established cryptocurrency trading platform that has since undergone a brand upgrade and expanded its compliant overseas operations.
- Gate.io, Bitget, and MEXC (Matcha): These are also overseas platforms operating in international markets and providing a variety of cryptocurrency trading services.
All of the above platforms provide services to users in compliant countries and regions worldwide but do not offer fiat currency exchange or trading services to users in mainland China. Investors should fully understand the high risks associated with cryptocurrency trading and relevant policy regulations, and must not trust illegal domestic trading promotions or advertisements.
