Recently, OKX and Coinbase began to withdraw non-compliant customers, sparking much discussion. Some say they 'forgot the way back', while others question whether China fundamentally allows compliant crypto trading to exist.


I want to express a contrary viewpoint:



Crypto exchanges can actually operate compliantly in China.



However, very few people have truly built this model. Today, let's talk about this, clarifying why it 'can' and why 'no one does'.

I. Reference Model: China actually already has a compliant channel for 'domestic investment in overseas assets'.


The QDII funds and cross-border ETFs (RQDII) we are familiar with are actually such channels. They allow you to:

  • Purchase products with RMB

    Invest in overseas assets (US stocks, Hong Kong stocks, indices, bonds, etc.)

    Ultimately, settlement can only be in RMB, and physical withdrawal of assets is not permitted.

Let me give a few products that everyone has heard of:

  • E Fund S&P 500 (001592)

    China Asset NASDAQ 100 (000011)

    Huatai-PB NASDAQ ETF (159941)

    Harvest Hang Seng Technology ETF (513130)

These products allow us to indirectly participate in the global market with RMB, the model is mature and complies with regulatory requirements.

II. This model can be fully replicated in crypto exchanges.


If we 'translate' this logic to crypto exchanges, the outcome is actually very clear:

  • RMB deposit → exchange for stablecoins, like buying QDII shares.

    Can only trade BTC/ETH, etc. internally on the platform, cannot withdraw, just like ETF trading.

    RMB withdrawal → settlement of profits and losses, just like fund redemption with payment to the account.

To sum it up in one sentence:


This is a crypto version of QDII, where crypto assets do not leave the market, funds are in a closed loop, compliant and legal.


This model also effectively addresses several key concerns of regulators:

  • No illegal cross-border fund flows.

    No escape of on-chain assets.

    No physical delivery or over-the-counter trading.

As long as you cooperate with real-name registration, AML, and risk control systems, compliance can be fully realized.

III. So, the question arises: Why is no one doing it?

Over the years, we have seen that mainstream platforms have not truly implemented this compliant model:

  • Huobi hasn't done it

    Binance hasn't done it

    OKX hasn't done it

    Even the Hong Kong licensed exchange HashKey hasn't done it

It's not that no one has thought of it, but that it's too difficult to implement.

There are two core issues:

The licensing threshold is too high.

To create a crypto QDII, you must connect with the central bank, foreign exchange administration, and securities regulatory commission, involving the entire process of fund custody, cross-border currency exchange, risk hedging, etc., which is costly, time-consuming, and difficult.

The platform's willingness is not strong

A compliant model means that funds remain within the platform and cannot be withdrawn, leading users to feel 'not free'; for exchanges, the profit model is limited, and it is faster to continue down a gray route.

This is also why many platforms waver between 'compliance' and 'market demand'.

IV. Conclusion: Compliance is not impossible, just that very few people are truly doing it.

We are not lacking in compliant ideas, but no one is willing to solidly pave this path.



It’s not that China doesn’t allow it, but that no one can truly make it happen.



Once a platform is willing to bear the costs and solve the entire chain issues, breaking through this path for RMB investment in crypto assets will be the real meaning of compliance.

Until that day comes, we can only continue to engage in guerrilla tactics on-chain.

Do you think such a model is possible? Is it that regulation is too difficult, or that platforms do not want to do it? Feel free to leave a comment and discuss.

If you find this inspiring, feel free to like, share, and support so more people can see this 'actually feasible' compliant path.