Crypto regulation in China
Mainland China bans crypto businesses and trading services, not the simple fact of holding a coin. Here is the exact line.
Mainland China prohibits crypto business activity, not every contact with crypto. Since 2021, exchanging, trading, matching orders, issuing tokens and providing pricing or other services for crypto are illegal financial activities, including offshore exchanges serving mainland residents, and crypto mining was ordered shut down. A February 2026 notice extended the ban to yuan-pegged stablecoins and tokenized real-world assets without approval. No law explicitly makes it a crime for an individual simply to hold crypto, but contracts involving it may be unenforceable and losses fall on the investor.
Last reviewed: November 2026. Facts on this page were checked against official sources on November 4, 2026.
China at a glance
| Owning crypto | Not explicitly banned for individuals, but unprotected: crypto investment contracts may be void. |
|---|---|
| Buying and selling | Banned: exchanges, trading services and offshore platforms serving mainland residents (September 2021). |
| Paying with crypto | Banned: crypto may not circulate or be used as currency. |
| Exchange licensing | No licences; all crypto exchange businesses are illegal. |
| Mining | Banned since 2021, though some mining continues covertly. |
| Tax | No crypto tax regime, as the activity is not permitted. |
| Stablecoins | Yuan-pegged stablecoins banned without approval, including when issued abroad (February 2026). |
| Restrictions and bans | ICOs banned since 2017; unapproved RWA tokenization banned since 2026. Hong Kong is separate. |
Owning crypto
This is where "banned" needs care. The 2021 and 2026 notices ban crypto business activities and say crypto has no legal-tender status and must not circulate as money. They do not contain a rule that makes it a crime for an individual to own crypto. Chinese courts have in some cases treated bitcoin as property with economic value. But the notices also say that investing in crypto against "public order and good morals" can make the transaction invalid, with losses borne by the investor. In practice, holding crypto in China is legally unprotected rather than explicitly criminal.
Buying and selling
A September 24, 2021 notice by the People's Bank of China and nine other agencies declared crypto exchange and trading services illegal financial activities, including providing information or pricing services and acting as a central counterparty. It also covered offshore exchanges that serve mainland residents, and people who work for them in China. Earlier, a 2017 notice had shut down domestic exchanges.
Paying with crypto
Crypto may not be used or circulated as currency. China's own digital currency, the e-CNY, is a central bank digital currency, not crypto. See what is a CBDC.
Exchange licensing
There is no licensing route for crypto exchanges in the mainland. Hong Kong licenses crypto platforms under its own laws; see Hong Kong.
Mining
In May 2021 the State Council called for a crackdown on bitcoin mining, and a September 2021 notice from the National Development and Reform Commission ordered mining phased out. China had been home to most of the world's bitcoin mining before then; the industry moved to the US, Kazakhstan, Russia and elsewhere. Researchers have estimated that some mining continued in China despite the ban.
Tax
China has no tax regime for crypto, since trading services are illegal. Tax authorities may still treat income from crypto as taxable under general rules.
Stablecoins
The Notice on Further Preventing and Addressing Risks Related to Virtual Currencies (Yinfa [2026] No. 42), issued February 6, 2026 by the People's Bank of China, the China Securities Regulatory Commission and six other agencies, prohibits issuing yuan-pegged stablecoins, by domestic or overseas entities, without express approval.
Restrictions and bans
- ICOs: banned since September 4, 2017.
- Tokenized real-world assets (RWA): tokenization inside China is banned unless it uses approved financial infrastructure; Chinese companies may issue RWA tokens offshore only after filing with and approval from the CSRC (2026 notice).
- Hong Kong and Macau are outside these rules.
What changed recently
Banks barred from handling bitcoin.
ICOs banned; domestic exchanges closed soon after.
State Council calls for a crackdown on bitcoin mining.
Crypto trading and exchange services declared illegal financial activities; mining phase-out ordered.
New notice extends the ban to yuan stablecoins and unapproved RWA tokenization.
- Enforcement against individual holders is uncommon and unpredictable; the legal position of simply holding crypto is untested in many situations.
This page summarizes the rules for general understanding. Laws change, and how they apply depends on your circumstances. For a decision that matters, check the official sources below or ask a qualified local adviser.
Frequently asked questions
Is crypto banned in China?
Crypto businesses are: exchanges, trading services, token sales, mining, and since 2026 yuan stablecoins and unapproved RWA tokens. Holding crypto isn't explicitly made a crime, but it has no legal protection.
Is bitcoin mining illegal in China?
Yes. Mining was ordered phased out in 2021.
Can people in Hong Kong trade crypto?
Yes. Hong Kong has its own licensing system, and the mainland bans don't apply there.
Where to next
Sources
- China intensifies regulations on cryptocurrency trading and mining, on the September 2021 notices (Haynes Boone)
- China's regulatory position on virtual currencies and RWA, Yinfa [2026] No. 42 (Charltons)
- Cambridge Bitcoin Electricity Consumption Index: mining map (Cambridge Centre for Alternative Finance)
Written for beginners and checked against the sources listed. Last reviewed November 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.