Is trading cryptocurrencies illegally in China?
This is a question that many people are concerned about, so today I will clarify.
Trading cryptocurrencies as an individual in China is not illegal; the policy stance is "all business is banned, risks are borne by individuals." Holding and trading cryptocurrencies personally is not against the law.
However, using payment institutions for RMB deposits and withdrawals is against regulations (such as bank transfers, Alipay, WeChat transfers, etc.), as it violates the central bank's rules. The central bank has, in January 2018 and June 2021, respectively, required financial payment institutions not to provide payment settlement services for virtual currency transactions.
However, the central bank is not a legislative body, nor is it an enforcement agency. Even if users violate this regulation, the central bank can at most require financial payment institutions to suspend your card number (not your account), which is not illegal. This suspension targets your card number and not you as a person. This means you can completely cancel your card and then apply for a new one; the new card will not be subject to any restrictions.
