As of 2025, China has banned all crypto payments, mining, and ownership. The e-CNY digital yuan is the only legal digital currency. Learn how the ban works, what’s illegal, and why China won’t back down.
Crypto Payments in China: What’s Allowed, What’s Blocked, and What You Need to Know
When it comes to crypto payments in China, the use of cryptocurrencies like Bitcoin or Ethereum for everyday transactions is restricted by government policy. Also known as digital currency restrictions, this isn’t about banning blockchain—it’s about controlling money flow. The Chinese government doesn’t want private digital currencies competing with its own system, which is why the digital yuan, a state-backed central bank digital currency (CBDC) launched by the People’s Bank of China is the only digital money you can legally use for payments.
China’s cryptocurrency regulations, enforced since 2021, ban financial institutions from processing crypto transactions and prohibit exchanges from operating within the country. That means you can’t walk into a store in Shanghai and pay with Bitcoin, even if the shop owner wants to accept it. But owning crypto isn’t illegal—just using it to pay for goods or services is. Many people still hold Bitcoin or Ethereum as assets, but they can’t spend them through banks, payment apps, or merchants. This creates a strange situation: crypto is allowed as a speculative investment, but not as money. Meanwhile, blockchain in China, is actively promoted for supply chain tracking, government records, and enterprise use—just not for peer-to-peer payments. The government sees blockchain as a tool for control and efficiency, not decentralization.
What does this mean for you? If you’re trying to use crypto to send money to family in China, pay for services, or shop online, you’re walking a legal tightrope. Peer-to-peer trading still happens through unofficial channels, but it’s risky. Banks monitor transfers, and accounts get frozen if they detect crypto-related activity. Even using foreign exchanges like Binance or Kraken from within China can trigger warnings. The real story here isn’t about crypto failing—it’s about the state winning. The digital yuan is already being tested in over 200 cities, with millions of users making daily payments through official apps. It’s faster, traceable, and fully under government control. No anonymity. No volatility. No competition.
What you’ll find in the posts below aren’t guides on how to bypass China’s rules. Instead, you’ll see real examples of what happens when crypto meets strict regulation—like how Russia’s crypto laws mirror China’s in some ways, or how Iraq’s ban creates underground markets. You’ll learn why exchanges like Core Dao Swap or 1BCH.com have zero traffic—not because they’re bad tech, but because users can’t legally use them. You’ll also see how people in Nigeria and other restricted regions adapt, and why privacy-focused coins like Aleo matter more than ever. This isn’t about getting rich quick. It’s about understanding where crypto fits—and where it doesn’t—in a world where governments are rewriting the rules of money.