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What are the crypto rules in China?
In September 2021 China's central bank and nine other authorities declared that crypto business activities, including exchanging crypto for money, trading between cryptocurrencies and issuing tokens, are illegal financial activities in mainland China. Foreign exchanges serving people in China are covered too.
What it means for you
The 2021 notice is aimed at businesses, not at the holding of coins, but it also says civil contracts involving crypto are invalid and any losses fall on the people involved. That leaves people in mainland China without legal protection if something goes wrong.
How it works
Notice Yinfa (2021) No. 237, issued by the People's Bank of China with nine other authorities, says virtual currencies such as Bitcoin, Ether and Tether do not have the same legal status as legal tender. It lists exchanging fiat and virtual currency, trading between virtual currencies, acting as a central counterparty, providing information and pricing services, token fundraising and virtual currency derivatives as illegal financial activities that are strictly prohibited. It says overseas exchanges serving residents online are also illegal, and that related civil acts are invalid, with losses borne by those involved.
Source: Government of China: Notice on further preventing and handling the risk of virtual currency trading speculation (Yinfa 2021 No. 237, in Chinese) · checked 5 October 2026
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