Crypto Exchange Restrictions for Chinese Citizens in 2025: What’s Banned and Why
Dec, 16 2024
Crypto Ban Compliance Checker
This tool helps you determine if your crypto-related activities comply with China's 2025 cryptocurrency ban. Based on information from the article about Circular No.237.
As of June 1, 2025, Chinese citizens can no longer legally buy, sell, trade, or even hold any cryptocurrency. This isn’t a warning or a gray area-it’s a full criminal prohibition backed by the People’s Bank of China (PBOC) and enforced by police, banks, and tech surveillance systems. If you’re a resident of mainland China, owning Bitcoin, Ethereum, or even USDT is now illegal. Not risky. Not discouraged. Illegal.
How China Got to a Complete Crypto Ban
China didn’t wake up one day and decide to ban crypto. It spent over a decade slowly tightening the screws. The first move came in 2013, when the PBOC told banks not to process Bitcoin transactions. Then in 2017, they shut down every local crypto exchange overnight-BTCC, Huobi, OKEx-all gone. Miners were kicked out of provinces like Sichuan and Inner Mongolia in 2021 because their power use was seen as wasteful. By 2023, even using a VPN to access Binance or Kraken was flagged as suspicious activity by banks. The final blow came on May 30, 2025, with Circular No.237. This document didn’t just ban exchanges. It outlawed every crypto-related activity: trading, mining, OTC deals, wallet services, even giving advice on crypto prices. The law didn’t just target businesses-it reached into personal wallets. Holding crypto became a financial crime.What Exactly Is Illegal Now?
The ban is sweeping. Here’s what Chinese citizens can’t do anymore:- Buy or sell Bitcoin, Ethereum, or any other digital asset on any exchange-domestic or foreign
- Mine cryptocurrency using home rigs or industrial farms
- Hold crypto in any wallet, whether on a phone, hardware device, or paper
- Use USDT or other stablecoins to move money out of China
- Work for a crypto company, even remotely
- Post about crypto on social media if it’s seen as promoting trading
- Accept crypto as payment for goods or services
How the Government Enforces the Ban
China doesn’t rely on luck to catch violators. It uses technology at scale. Banks like ICBC, Alibaba’s Alipay, and Tencent’s WeChat Pay now have AI systems scanning every transaction for signs of crypto activity. If you send money to a known OTC broker’s account-even once-you’ll get flagged. The system looks for patterns: rapid transfers to overseas wallets, repeated small deposits matching known crypto exchange deposit addresses, or transactions timed with Bitcoin price spikes. In July 2025, police raided over 120 OTC trading rooms in Guangzhou and Shenzhen. These weren’t big operations-just individuals buying USDT with cash to send to friends overseas. Those caught faced fines, asset seizures, and in some cases, criminal charges for “illegally transferring capital abroad.” The government also blocks websites. Accessing Binance, Kraken, or Coinbase from a Chinese IP address now triggers a network-level block. Even trying to download a crypto wallet app from the App Store or Google Play on a Chinese phone will fail. Android users who sideload apps risk malware scans and device lockdowns.
Why China Banned Crypto-And Why It Won’t Reverse
The official reason? Financial stability and capital control. But the real reasons run deeper. First, crypto threatens the digital yuan. China has spent $10 billion building its own central bank digital currency (CBDC). It’s not just a digital version of cash-it’s a tool for total financial oversight. Every transaction is tracked, every spending pattern analyzed. Crypto, by design, resists that control. If people could hold Bitcoin instead of digital yuan, the government loses its grip. Second, crypto enabled capital flight. During periods of yuan weakness, Chinese citizens used crypto to move money offshore. USDT became a de facto offshore currency. That’s unacceptable to Beijing, which wants to keep capital inside the system. Third, it’s about power. Crypto is decentralized. No one controls it. China’s financial system is built on control. The state decides who gets loans, who can invest, who can save. Crypto breaks that model. Allowing it-even partially-would mean surrendering authority to anonymous networks. There’s no sign this will change. Even as other countries like Singapore and Switzerland welcome crypto firms, China is doubling down. The PBOC says the ban is “permanent” and “non-negotiable.”What About Hong Kong?
Hong Kong is the exception. While mainland China bans crypto, Hong Kong has opened its doors. Licensed exchanges like HashKey and OSL operate legally. Retail investors can buy Bitcoin through regulated platforms. ETFs tracking Bitcoin are now available. The government even offers tax incentives for Web3 startups. But here’s the catch: Hong Kong residents who are mainland citizens are still bound by mainland law. If you’re a Chinese citizen living in Hong Kong and you buy Bitcoin, you’re breaking Chinese law-even if you’re doing it legally in Hong Kong. Many mainlanders use Hong Kong accounts, but if they’re caught transferring funds back to the mainland, they risk penalties.What Happens If You Get Caught?
The consequences are real. In 2025, over 3,000 individuals were investigated for crypto violations. Most got fines ranging from 50,000 to 500,000 RMB ($7,000-$70,000 USD). Some had bank accounts frozen for up to five years. A handful faced criminal charges for “illegal business operations” or “capital flight.” If you’re a business owner with crypto holdings, your assets can be seized. If you’re a miner, your equipment is confiscated. Even if you bought crypto years ago and didn’t trade it, regulators can still demand you prove its origin-or forfeit it.
How Chinese Citizens Are Adapting
Some people have given up. Others are finding ways around the ban-though it’s dangerous. A few use peer-to-peer networks, trading cash for crypto through trusted contacts. Others use gift cards or prepaid cards bought overseas to fund foreign exchange accounts. Some send money to relatives abroad and have them buy crypto for them. But these methods are increasingly risky. Banks now monitor gift card purchases linked to known crypto platforms. A growing number are shifting to other assets: gold, foreign real estate, art. The state encourages this-it keeps money within the regulated system. The digital yuan is being pushed hard for everyday payments. In cities like Shanghai and Shenzhen, you can now pay for groceries, buses, and even hospital bills with the digital yuan app.The Bigger Picture: China’s Digital Future
China’s crypto ban isn’t about fear of technology. It’s about control. The state wants to own the financial layer of its digital economy. That’s why it’s investing billions in the digital yuan, blockchain for supply chains, and smart city infrastructure-all while shutting down anything it can’t monitor. The rest of the world is moving toward regulation, not prohibition. The U.S. is debating crypto rules. The EU passed MiCA. Even Russia and India are creating frameworks. But China chose a different path: total exclusion. For Chinese citizens, that means the door to crypto is closed-for now, and likely forever. The digital yuan isn’t just an alternative. It’s the only option the state will allow.What This Means for Global Crypto
China’s ban removed the world’s largest single market for crypto trading overnight. In 2020, Chinese users made up nearly 70% of Bitcoin trading volume. By 2025, that number dropped to near zero. Exchanges like Binance and Bybit lost billions in revenue. But the impact went beyond money. It shifted global crypto infrastructure. Mining moved to the U.S., Kazakhstan, and the Middle East. Trading volume shifted to Europe and North America. The crypto world adapted. China didn’t kill crypto-it just forced it to leave. For Chinese citizens, the choice is simple: follow the law or risk everything. For the rest of the world, China’s experiment serves as a warning: if a government wants to ban something, and it has the tech and willpower, it can.Can Chinese citizens still use crypto if they travel abroad?
Technically, yes-if you’re physically outside mainland China, you can buy or hold crypto. But if you bring crypto back into China, transfer funds to a Chinese bank account, or use it to pay for goods or services within China, you’re breaking the law. Authorities monitor cross-border financial activity closely. Even holding crypto while in China-even if you bought it overseas-is considered illegal under Circular No.237.
Is the digital yuan the same as cryptocurrency?
No. The digital yuan is a central bank digital currency (CBDC), fully controlled by the People’s Bank of China. Unlike Bitcoin or Ethereum, it’s not decentralized. Every transaction is tracked by the government. You can’t mine it. You can’t anonymize it. It’s digital cash with surveillance built in. China promotes it as a safer, more efficient alternative to crypto-but it’s designed to replace private digital money, not coexist with it.
Can Chinese companies invest in crypto through offshore subsidiaries?
Legally, no. While some firms tried using Hong Kong or Singapore subsidiaries to hold crypto, regulators now require full disclosure of all offshore crypto exposure. Any crypto held by a Chinese-owned entity-even overseas-is subject to audit. If discovered, companies face heavy fines, loss of business licenses, and personal liability for executives. The 2025 ban closed this loophole.
Are NFTs and Web3 projects banned too?
Yes. NFTs are classified as digital assets under the same law. Selling, buying, or trading NFTs within China is illegal. Even hosting a Web3 project with a Chinese user base can trigger enforcement. Some companies have tried to rebrand NFTs as “digital collectibles” or “membership tokens,” but regulators treat them the same. The ban applies to all blockchain-based assets that aren’t issued by the state.
Is there any legal way for Chinese citizens to access crypto?
No. There is no legal pathway for Chinese citizens to buy, hold, or trade crypto. The government has eliminated all official channels. Any service claiming to offer “compliant” crypto access in China is either misleading or operating illegally. The only legal digital asset is the digital yuan.
Brett Benton
November 1, 2025 AT 05:16Man, I remember when Bitcoin was just a weird internet thing. Now it's like China just pulled the plug on the entire digital future. Feels like watching a sci-fi movie where the government wins.
Beth Devine
November 1, 2025 AT 17:26It’s wild how the digital yuan isn’t just a currency-it’s a surveillance tool wrapped in convenience. People think they’re getting efficiency, but they’re trading privacy for a digital leash.
alvin Bachtiar
November 3, 2025 AT 08:56China didn’t ban crypto because it’s dangerous-it banned it because it’s uncontrollable. The state doesn’t fear decentralization. It fears irrelevance.
Phil Higgins
November 4, 2025 AT 15:36There’s a quiet tragedy here. A generation of Chinese tech-savvy kids grew up believing in open networks, peer-to-peer value, and financial freedom. Now they’re being taught that the only valid money is the one the state tracks.
Jason Coe
November 5, 2025 AT 00:33Look, I get why they did it. The digital yuan is their baby. They spent billions on it. They want it to be the only game in town. But banning crypto entirely? That’s like banning the internet because someone used it to share memes. You don’t solve a problem by erasing the entire ecosystem. People will still find ways. They always do. The difference now is that those ways are criminalized. That’s not control-that’s paranoia dressed up as policy.
And the OTC raids? That’s not financial regulation, that’s social control. People were just helping friends move money. Now they’re labeled criminals. What’s next? Jail time for sending a Bitcoin tip to a blogger?
Meanwhile, Hong Kong’s acting like the last free port for crypto in Asia. But even that’s a trap. If you’re a mainland citizen, you’re still breaking the law, even if you’re physically in HK. It’s like being told you can eat pizza in Italy but not bring the cheese back home.
And let’s not pretend this is just about capital flight. If it were, they’d just tighten forex controls. But they went after wallets. They went after mining rigs. They went after NFTs labeled as ‘digital collectibles.’ This isn’t about money. It’s about power. The state wants to own every transaction, every byte, every digital footprint. Crypto is the last bastion of digital anonymity in a society built on total visibility.
The irony? The digital yuan is literally blockchain tech-but with a central server that logs everything. So they’re using the same underlying tech they outlawed, but stripped of its soul. It’s like building a Ferrari and then gluing the steering wheel shut.
And don’t get me started on the ‘crypto is bad for financial stability’ line. The banking system’s been unstable since 2008. Crypto didn’t cause that. But it exposed it. And now they’re punishing the mirror instead of fixing the room.
Global crypto moved on. Mining went to Texas, trading went to Europe. But for 1.4 billion people? They’re locked out. Forever. And the worst part? Most of them don’t even realize what they’ve lost. They’ve been sold a shiny, safe, surveilled alternative and told it’s progress.
History won’t remember this as a financial move. It’ll remember it as the day a nation chose control over freedom-and called it stability.
Debby Ananda
November 5, 2025 AT 09:39Wow. Just wow. I mean, who even *thinks* this is a good idea? It’s like banning bicycles because someone rode one too fast. The digital yuan is basically a glorified bank app with extra steps and zero privacy. And yet, people are supposed to be thrilled? I’m just… stunned.
Helen Hardman
November 6, 2025 AT 00:47It’s heartbreaking to think about how many young Chinese people were just getting into crypto as a way to learn about finance, tech, and autonomy. Now they’re being told it’s illegal to even hold it. I hope they find other ways to explore these ideas-maybe through open-source projects or decentralized tools that don’t involve money. But it’s a loss for the whole world when innovation gets crushed by fear.
bob marley
November 7, 2025 AT 03:55Of course it’s a conspiracy. The PBOC is just a front for the CCP’s AI overlord. They’re using crypto bans to prep for full mind control via digital yuan implants. You think they’re worried about capital flight? Nah. They’re scared you’ll realize the digital yuan is just a tracking chip in your pocket.
Nabil ben Salah Nasri
November 8, 2025 AT 04:12Man, I’ve seen this before. The same thing happened with social media in the 2010s. Governments panic, then overreact. But here’s the thing-crypto didn’t disappear. It just went underground. And now? It’s more resilient than ever. The people who still believe in it? They’re the ones building the next version. China might control its borders, but it can’t control ideas.
Kaela Coren
November 9, 2025 AT 10:03The structural implications of this policy are profound. The state’s assertion of monopolistic control over digital value creation represents a paradigmatic shift in the relationship between citizen and sovereign. One must question whether such centralization constitutes a regression in financial epistemology.
Elizabeth Melendez
November 11, 2025 AT 07:16I just feel so bad for the miners in Sichuan. They were using hydro power that would’ve gone to waste anyway. Now their rigs are just scrap metal. And the people buying USDT to send money to family abroad? They’re not criminals-they’re just trying to survive. This law feels so cold.
And the digital yuan? It’s like being handed a gift card that only works in one store… and that store watches everything you buy. I’d rather have Bitcoin, even if it’s risky.
Genevieve Rachal
November 12, 2025 AT 20:01Let’s be real. This isn’t about financial stability. It’s about control. And the fact that people are still trying to game the system with gift cards and overseas relatives? That’s not innovation. That’s desperation. And it’s pathetic. If you can’t handle the rules, don’t play the game.
David Roberts
November 14, 2025 AT 02:24Interesting. The PBOC’s move aligns with Foucault’s panopticon model-financial surveillance as normalized discipline. Crypto’s pseudonymity disrupts the biopolitical order. Hence, eradication. The digital yuan isn’t currency-it’s a disciplinary apparatus. The state doesn’t want to regulate money. It wants to regulate behavior. And yes, the fact that you can’t even *hold* crypto anymore? That’s not law. That’s ontological control. You’re not just forbidden to transact-you’re forbidden to *think* in terms of decentralized value.
Bhavna Suri
November 15, 2025 AT 22:42China is right. Crypto is dangerous. People lose money. They get scammed. Better to ban it than let people suffer.
Jessica Hulst
November 17, 2025 AT 13:28So let me get this straight. You can’t own Bitcoin, but you can own a 10 million dollar apartment in Vancouver? You can’t trade ETH, but you can buy a Picasso? You can’t mine crypto, but you can mine gold? The state isn’t against wealth-it’s against wealth that can’t be tracked. That’s not about stability. That’s about hierarchy.
And the digital yuan? It’s not money. It’s a loyalty card with a camera. You get points for buying rice, but the government gets your data. You’re not a citizen-you’re a data point with a bank account.
Meanwhile, the rest of the world watches and says, ‘Wow, China’s so efficient.’ But efficiency without freedom isn’t progress. It’s just a prettier prison.
And the worst part? People in China might not even realize they’re being played. They’re told the digital yuan is modern. Safe. Convenient. But they’re not told it’s the end of financial autonomy. They’re told it’s the future. But it’s just the past-feudalism with a smartphone app.
China didn’t ban crypto because it’s dangerous. They banned it because it’s democratic.
Eli PINEDA
November 19, 2025 AT 12:38wait so if i go to japan and buy btc and then fly back to china with it on my phone… is that illegal? like… technically i didnt buy it in china?
Monty Tran
November 20, 2025 AT 01:55China bans crypto because it fears the truth. Decentralization exposes the fragility of state control. The digital yuan is a lie dressed as innovation. It’s not money-it’s a leash. And the world is watching as a superpower chooses surveillance over freedom. History will judge this not as economic policy-but as moral collapse.
Brian McElfresh
November 21, 2025 AT 11:32They’re using this to prep for the Great Reset. The digital yuan is just phase one. Next they’ll force everyone to use it for groceries, medicine, even toilet paper. They’re tracking your every move. Don’t believe me? Just wait till your digital yuan balance drops because you bought a book about Bitcoin. It’s already happening. The cameras, the AI, the banks-they’re all connected. You think you’re safe? You’re not.
Mehak Sharma
November 22, 2025 AT 12:51It’s fascinating how China has turned financial policy into a philosophical statement. Crypto represents chaos, unpredictability, individual sovereignty-values antithetical to a society built on harmony and order. The digital yuan isn’t a currency; it’s a covenant. A promise that the collective will always outweigh the individual. And in a nation of 1.4 billion, that’s not oppression-it’s survival.
Let the West have its libertarian fantasies. China has built a system where no one starves because of a bad investment. Where no child’s education is ruined by a Ponzi scheme. Where the state protects-not by force, but by foresight.
Yes, freedom is lost. But so is suffering. And in the end, which is more valuable?
DeeDee Kallam
November 23, 2025 AT 14:25why is everyone so mad? i mean like… i get it but also… if you want to trade crypto just move to hong kong or thailand or something. stop being dramatic. china is just trying to keep things stable. not everyone needs to be a crypto bro.