China doesn’t just discourage cryptocurrency trading-it blocks it. Since 2017, the government has systematically shut down every major centralized crypto exchange operating within its borders. By 2021, the ban became total: no trading, no mining, no banking support. And as of 2026, that ban is still fully in force-with no signs of loosening.
Which crypto exchanges are banned in China?
All major international crypto exchanges are blocked in China. This includes Binance, Coinbase, Kraken, Huobi, OKX, Bitfinex, and Gemini. Even if these platforms are headquartered overseas, they’re not allowed to serve Chinese users. The Chinese government doesn’t just block their websites-it actively prevents Chinese citizens from accessing them through technical and legal means.
Domestic exchanges like Huobi and OKX used to operate openly in China until 2017. Then came the crackdown. They shut down their local operations, moved headquarters overseas, and now operate in places like Singapore and Malta. But even those offshore versions can’t legally serve Chinese residents. If you’re in China and try to sign up for Binance or Coinbase, you’ll hit a wall-either the site won’t load, or your account gets flagged and frozen.
How does China enforce the ban?
It’s not just about blocking websites. China uses a three-layer system to crush crypto access:
- Internet censorship: The Great Firewall blocks direct access to crypto exchange domains. If you try to visit binance.com from within China, you’ll get an error before the page even loads.
- Banking restrictions: Chinese banks are forbidden from processing crypto-related payments. No bank account can be linked to a crypto exchange. If you try to deposit yuan to buy Bitcoin, the transaction gets rejected.
- Legal consequences: Using a VPN to bypass restrictions isn’t illegal by itself-but if you’re caught trading crypto, you could be charged with illegal fundraising or capital flight. Both are criminal offenses under Chinese law. Authorities have tracked users through KYC documents, IP logs, and wallet addresses linked to Chinese IDs.
Chinese regulators also monitor overseas exchanges for Chinese user activity. If a user signs up with a Chinese phone number or ID, that account gets flagged. Some users report their accounts being frozen without warning-no explanation, no appeal.
Is it illegal to own crypto in China?
This is a common misunderstanding. China hasn’t made it illegal to own Bitcoin or Ethereum. You won’t be arrested for holding crypto in a private wallet. But you can’t legally buy it, sell it, or trade it through any official channel. That’s the gray zone.
People still hold crypto. Some inherited it. Others bought it before the ban. But if you try to cash out, convert it to yuan, or use it to pay for goods, you’re breaking the law. The government doesn’t care if you have Bitcoin in a hardware wallet-but it does care if you use it to move money out of China or avoid capital controls.
What about decentralized exchanges (DEXs) and P2P trading?
Many Chinese crypto users have shifted to decentralized platforms like Uniswap, PancakeSwap, or local P2P marketplaces. These aren’t hosted by companies-they run on smart contracts. You trade directly with other people. That makes them harder to shut down.
But even these aren’t safe. Chinese authorities have cracked down on P2P platforms that connect buyers and sellers within China. In 2024, several WeChat groups and Telegram channels used for crypto P2P trades were shut down. Operators were fined. Users were warned.
Over-the-counter (OTC) trading still exists, but it’s risky. Buyers and sellers meet in person or use encrypted apps. Prices are often 5-10% higher than global rates because of the added risk. Liquidity is low. And if you get caught, you could face serious legal trouble.
Why does China hate crypto so much?
It’s not about Bitcoin. It’s about control.
China’s government wants to manage money flow, prevent capital flight, and keep its financial system stable. Cryptocurrencies threaten all three. If people can easily move money out of China using Bitcoin, it undermines the yuan. If people stop using banks, it weakens state control over the economy.
That’s why China created the e-CNY-the digital yuan. It’s not decentralized. It’s not anonymous. It’s fully tracked by the government. Every transaction is recorded. Every wallet is linked to an ID. The e-CNY is China’s answer to crypto: a digital currency that gives the state more power, not less.
While the rest of the world debates regulation, China chose outright prohibition. And they’ve stuck with it.
What happened in 2025? Did the ban get worse?
In May 2025, rumors exploded online: "China made crypto completely illegal!" Social media posts claimed owning Bitcoin was now a crime. Some even said police were raiding homes to seize hardware wallets.
It was fake.
Fact-checkers from Bitcoin Junkies, Grok, and major crypto news outlets confirmed: there was no new law. No official announcement. No change in policy. The claims were recycled from 2021. The panic was manufactured.
But the damage was done. Bitcoin dropped $7,000 in hours. Traders worldwide reacted to the fear-even though it was baseless. That’s how powerful China’s crypto ban is: just the rumor of a crackdown can shake markets.
How many people are affected?
China has over 1.4 billion people. An estimated 400 million of them have tried crypto at some point. That’s more than the entire population of the United States.
Since the ban, trading volumes from China have dropped by over 90%. Before 2021, Chinese users made up nearly 40% of global Bitcoin trading. Now? Almost zero.
That’s a massive hole in the crypto market. It’s why prices sometimes dip when China’s name comes up in headlines-even when nothing new is happening.
What’s the future of crypto in China?
Don’t expect a reversal. The government has doubled down on the e-CNY. They’re testing it in over 200 cities. They’re integrating it into public services, taxes, and welfare payments.
Some experts think China might one day allow licensed exchanges-under strict surveillance. Maybe a state-controlled platform where you can trade crypto, but only if the government can see every trade. But even that’s speculative.
For now, the ban stands. No trading. No banking. No official access. And unless the government changes course completely, that won’t change before 2027-or likely ever.
What happens if you get caught trading?
There’s no public record of people going to jail just for holding crypto. But there are cases of people being fined, having assets seized, or being charged with "illegal fundraising."
In 2023, a man in Guangdong was sentenced to two years in prison for running a P2P crypto trading group. He collected over 12 million yuan ($1.7 million) from users, then disappeared. The court called it "fraudulent capital flow."
Another case in Shanghai involved a woman who used her business account to transfer crypto payments. Her company was shut down. Her bank accounts frozen. She was barred from starting any new business for five years.
The punishment isn’t always jail. But it’s always costly.