Is Cryptocurrency Legal in China in 2025?
No, cryptocurrency is not legal in China as of July 2025. Cryptocurrency is a complicated subject in China. Even though it was one of the first countries to accept cryptocurrency, Mainland China doesn’t allow trading using centralised exchanges. However, the over the counter (OTC) ways and offshore platforms are still used. In addition to previous prohibitions on trading and mining activities, China has now officially outlawed private ownership of digital currencies such as Bitcoin. But the Shanghai State-owned Assets Supervision and Administration Commission indicated in its most recent meeting in July 2025 that the rapid evolution of digital assets can result in softening China’s strict position on crypto.
What Crypto Activities Are Banned in Mainland China?
You might be looking to learn more about the prohibition in Mainland China to protect yourself better against regulations. Mainland China has banned centralised exchanges since 2017; this makes it much harder for people to trade digital assets. Not stopping there, Mainland China has expanded this into a blanket ban in 2021; this ban includes initial coin offerings (ICOs), mining, and foreign platforms to make sure Chinese people don’t consult international options as well. To top it all off, criminal penalties may be given to people and firms who deal with illegal fundraising or moving capital out of the country. China’s own state-backed digital currency, e-CNY is being pushed for use instead.
What Crypto Activities Are Legal in China?
So, what can you do regarding crypto in China? Let’s talk more about our readers’ options. The Blockchain Service Network (BSN) operates in China to help blockchain efforts grow in industries. Firms can take part in blockchain innovation through BSN to further protect their country’s safety while also participating in crypto efforts. Another legal area is the non-fungible token (NFT) platforms. These platforms deal with strict regulations also. In China, NFTs are not linked to public cryptocurrencies like Ethereum but they can be traded using cash. Another place where you can experiment legally in China is the smart contracts and utility tokens being used. These should be used within private ecosystems and not serve as investment assets. According to the sources of Moonpay, one example we can give about utility tokens worldwide is ERC-20 tokens that run on the Ethereum network, which users must hold to execute smart contracts and engage in decentralized finance (DeFi).
How Does OTC Crypto Trading Work in China?
Over-the-counter (OTC) crypto trading mostly works with peer-to-peer arrangements in China. One example for our readers is the stablecoins like USDT which are heavily preferred. To conduct these peer-to-peer deals, apps like WeChat and Alipay are used. These apps aren’t counted as official financial platforms; so, you’re most likely on your own if there is scams or disagreements.
What Is the Status of e-CNY (Digital Yuan)?
The e-CNY, also known as digital yuan, is controlled by the People’s Bank of China (PBOC); it is the official central bank digital currency in China. Since it is managed by PBOC, it is under state control and fully centralised as an alternative to the already existing money system. With national use being the intent, e-CNY is already integrated into Alipay and WeChat.
How Is China Tracking Crypto Flows?
Let’s talk more about how China is keeping track of all the crypto activities that occur within the country. Law enforcement agencies are the first players for tracking. They use on-chain analytics to keep an eye on suspicious activity. VPN usage and IP details are also monitored by Chinese officials and wallet behaviour is also analysed for possible restriction evasions. China is also working closely with international regulatory bodies like the Financial Action Task Force (FATF) and Interpol to ensure their compliance matches the rest of the world.
What AML/KYC Rules Apply in China?
Anti-money laundering (AML) and Know Your Customer (KYC) regulations of China are strict just like the other aspects we’ve mentioned above for our readers. All wallets should be registered in China to make sure the owner can be traced back. As part of its international compliance, the FATF Travel Rule has been adopted by China. Crypto transaction details should be kept and shared when needed. Finally, crypto can’t be used to trick capital controls, this can lead to serious consequences. Money flows of all kind should be transparent and trackable by the Chinese officials.
What Is Hong Kong’s Crypto Framework?
If we were to compare Mainland China’s regulations and infrastructure to Hong Kong’s for our readers, Hong Kong has a more laid-back yet more structured framework. Virtual Asset Service Providers (VASPs) should be registered to the Securities and Futures Commission (SDC) and comply with AML/KYC regulations since both of these are requirements. On the other hand, firms adapting crypto is heavily encouraged by Hong Kong.
What’s the Difference Between Mainland China and Hong Kong?
Let’s share more details about our comparison of Mainland China and Hong Kong when it comes to cryptocurrency. Mainland China more heavily issues bans and criminal penalties regarding cryptocurrency activities. Most ways used internationally are banned in Mainland China while the government supports the local e-CNY. When it comes to Hong Kong, our Sanction Scanner experts determine a more open approach. Crypto trading is legal in Hong Kong as long as licensing requirements are met and the firms are following AML/KYC regulations. Hong Kong is, therefore, more preferred as it encourages crpyto innovation rather than Mainland China with its strict restrictions.
What Are Recent Crypto Developments in China (2023–2025)?
In recent years, China’s BSN has been expanding internationally. BSN has an international portal in Hong Kong and Macau aiming for developers’ reach. China may be aiming to promote its initiative globally to promote its usage. On the other hand, China is cautious towards NFTs. In 2023, companies were warned about the risks of NFTs; in 2024, stricter guidelines were put in place that said NFTs shouldn’t be regarded as investment devices. Another development is about projects surrounding AI and blockchain. Chinese officials said that the roadmap they created in 2025 for a national blockchain infrastructure aims to attract approximately 400 billion yuan ($54.5 billion) in annual investments over the next five years.
Is It Legal to Use Binance or Coinbase in China?
For our readers who are wondering if they can use Binance or Coinbase in China, the answer is simply no. Mainland China is known for its disdain of centralised crypto firms; so, their use is completely prohibited. Some users are known to use VPNs to get access to these platforms, but doing so is illegal and can lead to fines and more legal trouble.
Can Chinese Citizens Buy Bitcoin in 2025?
Buying Bitcoin through centralised exchanges is prohibited in China since these exchanges are banned. There is one exception, though. Over-the-counter (OTC) trading that uses stablecoins like USDT is still a grey area legally. Many continue to buy and use Bitcoin illegally, but getting caught may have its own consequences. The Chinese government also holds 194,000 Bitcoins, worth at least $17.6 billion (estimated) even though the cryptocurrency is banned.
How Can Sanction Scanner Help Crypto Companies Operating in China or Hong Kong?
Crypto firms operating in China or Hong Kong can benefit greatly from using Sanction Scanner. This tool offers real-time AML screening for OTC platforms and exchanges. PEP and sanctions checks against global lists from FATF, the UN, and more ensures you aren’t working with high-risk or banned parties. Your company’s international transfers are supported by Sanction Scanner once again. The tool’s Travel-Rule ready monitoring solution ensures that sender and recipient details are kept. Sanction Scanner offers risk scoring that is region-specific and it complies with FATF expectations while so.
FAQ's Blog Post
Cryptocurrency trading is banned in China, and the government considers crypto-related activities illegal.
The Chinese government strictly opposes private crypto use but supports blockchain and its own digital yuan (e-CNY).
Chinese citizens can hold crypto in foreign accounts, but domestic trading and exchanges are prohibited.
Crypto exchanges were shut down or forced to move offshore after the 2021 crackdown.
Crypto mining was banned in 2021 due to energy concerns and financial risk.
China actively promotes blockchain innovation and has built state-backed platforms for trade, ID, and logistics.
Sanction Scanner helps global firms avoid restricted parties and stay compliant with China-related sanctions and AML screening.
