China has effectively banned cryptocurrency trading, and as of June 1, 2025, the ban was expanded to include private ownership of crypto assets such as Bitcoin and Ethereum .
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🔍 A Timeline of China's Crypto Crackdown
September 2021: China issued a nationwide ban on all cryptocurrency trading, mining, and related services. Financial institutions and payment firms were prohibited from facilitating crypto transactions .
May 2025 (effective June 1): The People’s Bank of China announced a sweeping new restriction that extends beyond trading and mining to prohibit individual ownership of crypto assets entirely .
Despite this, some underground activity continues, mostly via peer-to-peer (P2P) networks, OTC brokers, VPN access to offshore exchanges, and even in-person deals at physical locations like cafes or laundromats .
A legal nuance emerged in early 2025 when a Shanghai High Court recognized crypto as property, meaning individuals can legally hold crypto—but commercial trading or speculative use remains illegal and risky .
