Chinese citizens crypto ban, a sweeping policy enacted in 2021 that prohibits financial institutions and individuals from engaging in cryptocurrency transactions. Also known as China’s crypto crackdown, it was never about stopping blockchain tech—it was about controlling money flow and protecting the digital yuan. Unlike countries that outright ban crypto ownership, China lets citizens hold crypto privately but blocks banks, exchanges, and payment apps from touching it. This creates a gray zone: you can keep Bitcoin in a wallet, but you can’t buy it with your bank account, trade it on local platforms, or use it to pay for anything.
The ban didn’t just target individuals—it crushed mining operations. China once ran over 70% of Bitcoin’s global hash rate. By 2021, the government shut down farms in Sichuan and Xinjiang, forcing miners to flee to Kazakhstan, the U.S., and Nigeria. Meanwhile, the People’s Bank of China pushed its own digital currency, the e-CNY, which gives the state full visibility into every transaction. This isn’t just about control—it’s about replacing anonymity with surveillance.
China’s digital yuan, a state-controlled central bank digital currency (CBDC) designed to replace cash and limit private crypto use. Also known as e-CNY, it’s the world’s most advanced CBDC, with over 260 million users as of 2024. It’s not decentralized. It’s not anonymous. And it’s the direct opposite of what Bitcoin promised. Meanwhile, crypto enforcement, the aggressive monitoring and penalties applied to those who bypass China’s crypto rules. Also known as crypto crackdown, it includes fines, account freezes, and even criminal charges for repeat offenders. This enforcement mirrors what’s happening in Iraq’s crypto ban, a similar move by the Central Bank of Iraq since 2017 that blocks banks from processing crypto. Also known as Iraq cryptocurrency restrictions, it shows how authoritarian regimes use financial control to maintain power.
What’s missing in China’s policy? Clarity. There’s no official list of what’s illegal. No public guidance. No appeals process. That’s intentional. It keeps people guessing, scared, and compliant. While some use VPNs and peer-to-peer platforms to trade, the risk is real. Your wallet isn’t protected. Your funds aren’t insured. And if you’re caught, you won’t get a second warning.
So why does this matter to you if you’re not in China? Because China’s model is being watched—and copied. Countries like Iran, Nigeria, and now Iraq are following the same playbook: ban crypto for the public, launch a state digital currency, and track every dollar. The global fight isn’t between Bitcoin and Ethereum. It’s between privacy and control. And China is winning the first round.
Below, you’ll find real reviews, deep dives, and scam alerts that show how this ban plays out in practice—from fake exchanges targeting Chinese users to the rise of decentralized workarounds. You’ll see what’s happening on the ground, not just in policy papers.
As of June 2025, Chinese citizens are banned from owning or trading any cryptocurrency. This comprehensive ban, enforced by the PBOC, shuts down all crypto activity, from mining to personal wallets, to protect financial control and promote the digital yuan.