As of June 1, 2025, Chinese citizens can no longer legally buy, sell, hold, or trade any cryptocurrency - not even Bitcoin or Ethereum. This isn’t a warning. It’s not a gray area. It’s a full legal ban, enforced by the People’s Bank of China (PBOC) and backed by police action, bank freezes, and digital surveillance. If you’re a resident of mainland China, your access to crypto exchanges like Binance, Coinbase, or Kraken has been cut off - not just blocked by firewalls, but outlawed under national law.
How China’s Crypto Ban Got So Strict
China didn’t wake up one day and decide to ban crypto. It spent over a decade slowly tightening the screws. Back in 2013, the PBOC warned banks not to handle Bitcoin transactions. By 2017, it shut down all domestic crypto exchanges and banned ICOs - the fundraising method used by new tokens. In 2021, mining was outlawed because of energy use. Each step chipped away at access until, in May 2025, Circular No.237 dropped: total prohibition.The ban covers everything: trading on exchanges, using OTC brokers, mining, staking, even holding crypto in a personal wallet. It doesn’t matter if you bought it before the ban. Owning it now is illegal. Financial institutions - including Alipay and all major banks - are required to monitor accounts for any sign of crypto activity. If they spot a pattern of payments to known crypto platforms, they freeze the account and report it to regulators.
What’s Actually Illegal Now
Under Circular No.237, these activities are classified as illegal financial operations:- Buying or selling cryptocurrencies with yuan
- Using stablecoins like USDT to move money out of China
- Providing price data or trading tools for crypto
- Acting as a middleman between buyers and sellers
- Running a crypto exchange - even if it’s based overseas
- Accepting crypto as payment for goods or services
- Using crypto as collateral for loans
Even discussing crypto trading on social media or running a YouTube channel about Bitcoin mining can land you in trouble. Local regulators have cracked down on self-media accounts promoting crypto as an investment. The message is clear: no exposure, no discussion, no gray zones.
How Enforcement Works in Practice
China doesn’t rely on just laws - it uses technology. Banks now use AI-driven systems to flag transactions that match the signature of crypto purchases: small, recurring payments to overseas wallets, transfers to known OTC broker accounts, or sudden spikes in cash withdrawals followed by international wire transfers.In July 2025, police in Guangdong arrested 87 people involved in a USDT-based money-laundering ring. They used fake business licenses to open corporate bank accounts, then moved over 1.2 billion yuan ($165 million) out of China by converting yuan to USDT, then to foreign currencies. The operation was uncovered because the system flagged abnormal fund flows - exactly the kind of pattern the PBOC told banks to watch for.
Even VPNs won’t save you. Accessing a foreign exchange like Binance through a proxy is still illegal. If you’re caught, you could face fines, asset seizure, or criminal charges under China’s financial crime laws. There’s no distinction between casual users and traders - the law treats all crypto activity the same.
Why China Won’t Back Down
The ban isn’t just about controlling money. It’s about control. China’s government sees decentralized crypto as a threat to its financial sovereignty. If people can move money outside the system without approval, it weakens capital controls - and that’s dangerous for a country trying to stabilize its currency and prevent yuan depreciation.The alternative? The digital yuan, or e-CNY. Launched in pilot programs since 2020, the digital yuan is now fully integrated into daily life in cities like Beijing, Shanghai, and Shenzhen. It’s not blockchain-based. It’s not anonymous. It’s a state-controlled digital cash system where every transaction is tracked. The government wants you to use this - not Bitcoin.
Experts agree: there’s no chance of China reversing the ban anytime soon. The digital yuan is too far along. The infrastructure is built. The banks are locked in. The regulatory machine is running. Crypto isn’t just banned - it’s being replaced.
What About Hong Kong?
Hong Kong is the exception. While mainland China bans crypto, Hong Kong has moved toward regulation. Licensed exchanges like HashKey and OSL can now serve retail investors. Tokenized assets and crypto ETFs are approved. The government even issued a licensing framework for stablecoins in early 2025.But here’s the catch: Hong Kong is still part of China. If you’re a mainland resident and you use a Hong Kong exchange, you’re still violating Chinese law. The PBOC has made it clear: even offshore access counts as illegal activity. Some people try - using Hong Kong bank accounts or friends to trade - but the risk is high. Authorities monitor cross-border fund flows closely, and detection is increasingly common.
What Happens to Businesses?
Chinese companies can’t hold crypto on their balance sheets. Period. Any company found with Bitcoin or Ethereum listed as an asset faces audits, fines, and possible criminal liability for financial misrepresentation. Some firms try to hide exposure through offshore subsidiaries - say, in the Cayman Islands - but if regulators find out, they’ll go after the parent company.Even indirect exposure is risky. If a Chinese company invests in a Hong Kong-listed crypto ETF, that’s still considered a violation. The PBOC doesn’t care where the asset is held - if a Chinese citizen or entity benefits from it, it’s illegal.
What’s Left for Chinese Citizens?
Nothing legal. No exchanges. No wallets. No trading. No mining. No staking. No earning crypto rewards. No crypto debit cards. Even receiving crypto as a gift is now legally risky.Some people still hold crypto from before the ban - buried in cold wallets, forgotten on old devices. But selling it now? Impossible. Converting it back to yuan? Illegal. Keeping it? Technically still a violation. There’s no amnesty. No grandfathering. No safe harbor.
The only legal digital asset in China is the digital yuan. And it’s designed to be the opposite of crypto: traceable, controllable, and state-owned.
The Global Context
China’s ban is the strictest in the world. Even countries like Russia and India allow some level of crypto use - trading, holding, or taxation. China doesn’t allow any. It’s not just regulation - it’s eradication.Other nations are moving toward crypto adoption. The U.S. has ETFs. The EU has MiCA regulations. El Salvador made Bitcoin legal tender. But China? It’s going in the opposite direction - hard.
The global crypto market has adjusted. Exchanges that once relied on Chinese users - like Huobi and OKX - have completely shut down their mainland operations. Trading volumes from China dropped to near zero after June 2025. The era of China driving Bitcoin’s price swings is over.
What’s Next?
The next phase isn’t about banning more crypto - it’s about promoting the digital yuan harder. The PBOC is expanding e-CNY use to rural areas, integrating it into public services, and testing cross-border payments with other central banks. By 2027, they aim for 80% of domestic transactions to be conducted via the digital yuan.There’s no sign of relaxation. No political pressure to reopen crypto. No public demand for change. The ban is complete. The system is locked in. For Chinese citizens, crypto is no longer a financial tool - it’s a legal risk.
If you’re a Chinese citizen reading this, your only legal path forward is the digital yuan. Everything else - Bitcoin, Ethereum, Solana, USDT - is off-limits. Not because it’s unsafe. Not because it’s unstable. Because the state says so. And in China, that’s final.
Can Chinese citizens still use crypto through offshore exchanges?
No. Using offshore exchanges like Binance or Coinbase from within mainland China is illegal under Circular No.237. Accessing these platforms via VPN or other tools still violates Chinese law. Financial institutions are required to detect and report such activity, and users face potential fines or legal action if caught.
Is holding Bitcoin in a personal wallet legal in China?
No. Since June 1, 2025, individual ownership of any cryptocurrency - including Bitcoin, Ethereum, or stablecoins - is illegal in mainland China. This applies regardless of whether the assets were acquired before the ban. The law treats holding as a form of financial activity, which is now fully prohibited.
Can Chinese companies invest in crypto through subsidiaries abroad?
No. Chinese companies are prohibited from holding crypto directly or indirectly. Even if a subsidiary in the Cayman Islands owns Bitcoin, regulators can trace the funding back to the parent company in China. This is considered a violation of capital control rules and can lead to penalties, audits, or criminal charges.
Why did China ban crypto mining?
China banned crypto mining in 2021 primarily due to its massive energy consumption and environmental impact. Mining operations used up to 1% of China’s total electricity, straining power grids and conflicting with national carbon neutrality goals. The ban also aimed to reduce capital outflows and maintain financial control by cutting off a major source of decentralized economic activity.
Is the digital yuan the same as cryptocurrency?
No. The digital yuan (e-CNY) is a central bank digital currency (CBDC) issued and controlled by the People’s Bank of China. Unlike Bitcoin or Ethereum, it’s not decentralized, not anonymous, and not based on blockchain. Every transaction is tracked by the government. It’s designed to replace cash, not compete with crypto.
Can I use crypto in Hong Kong if I live in mainland China?
Technically, Hong Kong allows regulated crypto trading. But if you’re a mainland resident using Hong Kong exchanges, you’re still violating Chinese law. The PBOC considers any crypto activity by Chinese citizens illegal, regardless of location. Using Hong Kong accounts to trade or hold crypto can trigger investigations, especially if funds flow back into mainland bank accounts.
Are there any exceptions to China’s crypto ban?
No. The June 2025 ban is comprehensive and leaves no legal exceptions for individuals or businesses. Even tokenized assets, NFTs, or blockchain-based projects tied to crypto are covered. The only legal digital asset is the digital yuan. Any other form of cryptocurrency is prohibited.
What happens if I get caught using crypto in China?
If detected, you could face fines, frozen bank accounts, or criminal charges under financial crime statutes. Authorities have prosecuted individuals for operating OTC trading rings, laundering crypto via USDT, or promoting crypto trading online. Penalties vary, but enforcement has become more aggressive since July 2025 crackdowns.
Stanley Wong
December 5, 2025 AT 13:40So China just decided to turn its entire population into financial monks
Meanwhile the rest of the world is building crypto ETFs and tokenizing real estate
I mean I get the control thing but this is like banning books because someone might read something dangerous
Imagine growing up never knowing what Bitcoin is
Like your parents tell you fire is bad so you never touch it but you never learn why it burns
Now the digital yuan is the only lightbulb in the room and the government holds the switch
It’s not about money anymore it’s about who gets to tell you what your future looks like
And honestly if I was Chinese I’d be terrified not because I love crypto but because I love freedom to choose
They didn’t ban guns they banned thought
And that’s scarier than any market crash
One day someone’s gonna ask their grandkids what crypto was and the answer will be a myth
Like dragons or unicorns
Except this one was real
And we watched it get erased
Brooke Schmalbach
December 6, 2025 AT 01:59This isn’t a ban it’s a cultural purge disguised as fiscal policy
China’s digital yuan isn’t innovation it’s surveillance with a user interface
Every transaction tracked every purchase monitored every movement logged
They call it modernization but it’s just totalitarianism with better UX
Meanwhile the West is debating whether to tax crypto or regulate it
China didn’t debate they just deleted the option
And now they expect the world to admire their efficiency
Efficiency without liberty isn’t progress it’s prison architecture
They’ve turned finance into a state religion and crypto into heresy
Next up banning the concept of private property
Why stop at money when you can own thoughts too
This is the endgame of authoritarian capitalism
And we’re all just spectators waiting for the next domino to fall
Madison Agado
December 7, 2025 AT 08:08There’s something deeply tragic about a society that fears its own people’s ability to think independently
Crypto isn’t just money it’s a metaphor for decentralization autonomy and individual sovereignty
China doesn’t ban it because it’s unstable
They ban it because it’s dangerous to control
The digital yuan isn’t the future
It’s the last gasp of centralized power trying to hold on
History shows us that when you try to suppress information money ideas
You don’t eliminate them you just drive them underground
And underground systems are always more volatile more dangerous more unpredictable
So what they think is control is actually creating the conditions for their own instability
They’ve built a perfect cage
But the birds inside are learning to fly without wings
And one day they’ll break through the bars
Not with force
But with silence
The silence of a generation that never learned to trust anything
Tisha Berg
December 7, 2025 AT 17:00I just want to say I feel for the people in China
This isn’t about crypto
This is about being told you can’t choose your own path
And that’s something anyone can understand
Whether you’re in Beijing or Boston
Everyone deserves to have a say in their future
Even if it’s just deciding whether to buy Bitcoin or not
It’s not about the money
It’s about the right to decide
I hope one day they find a way to have that back
Not through rebellion
But through quiet resilience
And I hope the world doesn’t forget them
Joe West
December 8, 2025 AT 15:32For anyone wondering how this affects real people
Imagine having a savings account you built over 10 years
Then one day you’re told you can’t touch it
Because the government says it’s illegal
That’s not regulation
That’s theft with paperwork
And the worst part
They’re forcing everyone to use the digital yuan
Which means every coffee you buy every bus ride every gift you give
Is being logged
No privacy
No anonymity
No escape
It’s not a currency
It’s a leash
And China just gave every citizen one
Chris Mitchell
December 9, 2025 AT 05:20China didn’t ban crypto
They banned the idea that people can own anything outside the state
End of story
Martin Hansen
December 10, 2025 AT 10:01Wow China really showed those greedy crypto bros
Too bad they’re not rich enough to live in Hong Kong
Meanwhile I’m over here buying Bitcoin like it’s toilet paper
And the Chinese are stuck with a government app that tracks if they bought noodles or not
Classic
They think they’re winning
But they’re just building the world’s biggest digital prison
And the inmates are paying for the bricks
Scott Sơn
December 12, 2025 AT 01:58Let me get this straight
China bans Bitcoin because it’s a threat to control
But then they create a digital currency that’s literally the opposite of decentralized
It’s not a currency
It’s a confession booth
Every time you spend
You’re saying I trust the state
And if you don’t
You’re a criminal
That’s not economics
That’s psychological warfare
And the worst part
They’re making their own people the enforcers
Parents reporting kids
Friends reporting friends
It’s not a ban
It’s a cult
Frank Cronin
December 13, 2025 AT 20:57People still act like this is surprising
China has been building this for 15 years
They don’t care about your freedom
They don’t care about your money
They care about control
And if you think Bitcoin is the problem
You haven’t been paying attention
The real problem is you
Believing in decentralization
While living under a regime that treats citizens like data points
Don’t cry for them
Cry for yourself
Because if you think this won’t spread
You’re the one who’s naive
miriam gionfriddo
December 15, 2025 AT 18:06ok so china just banned crypto but like
what if i just hold it in a cold wallet
like i dont trade it
just like keep it
is that illegal too
wait i think i just got arrested
lol
why does this feel like a dystopian movie
and why am i still watching
Kenneth Ljungström
December 16, 2025 AT 14:48Man I just feel bad for the younger generation in China
They’ll never know what it’s like to own something truly yours
Not because it’s stolen
But because they were never allowed to try
And that’s the saddest part
Not the law
But the silence that follows
They’ll grow up thinking this is normal
And that’s the real victory for the state
Not the ban
But the acceptance
Peace out
❤️
Cristal Consulting
December 17, 2025 AT 07:43Remember when we thought crypto was just about money
Now it’s about freedom
And China just proved it
They didn’t ban Bitcoin
They banned the idea that people can be trusted
Stay strong
You’re not alone
Tom Van bergen
December 18, 2025 AT 03:18Who says crypto has to be legal
Maybe the state knows better
Maybe freedom is the problem
Maybe control is the solution
Why are we even arguing
They won
Move on
Sandra Lee Beagan
December 19, 2025 AT 17:41As someone who’s studied central bank digital currencies
This isn’t just about finance
It’s about the erosion of economic autonomy
The digital yuan is a tool of governance
Not innovation
And its success depends on compliance
Not adoption
China has created a system where dissent is invisible
Because it’s financially impossible
This is the quietest revolution
And the most terrifying
Ben VanDyk
December 20, 2025 AT 13:04China banned crypto
So what
It’s their country
Let them do what they want
Why are we even talking about this