1. Trading Ban (2017)
In September 2017, China banned **Initial Coin Offerings (ICOs) and shut down domestic cryptocurrency exchanges.
Trading platforms like BTC China, Huobi, and OKEx halted operations in China (though some relocated overseas).
2. Mining Ban (2021)
In May–June 2021, China intensified its crackdown by banning Bitcoin mining , citing financial risks and energy concerns.
This led to a massive exodus of miners to other countries (e.g., Kazakhstan, the U.S., and Russia).
3. Complete Ban on Transactions (2021)
In September 2021, the People’s Bank of China (PBOC) declared all cryptocurrency transactions illegal, including services like trading, lending, and derivatives.
Foreign exchanges were also blocked from serving Chinese users.
4. Current Status (2024)
Owning Bitcoin is not illegal, but buying, selling, or trading it is prohibited.
- Banks and payment platforms (Alipay, WeChat Pay) monitor and block crypto-related transactions.
Offshore exchanges (Binance, OKX, etc.) are inaccessible without VPNs, but some Chinese traders still use OTC (over-the-counter) methods.
5. China’s Digital Yuan (CBDC)
The government promotes its central bank digital currency (e-CNY) as an alternative to decentralized cryptocurrencies.
Why Did China Ban Bitcoin?
Capital control (preventing money outflow).
Financial stability (cracking down on speculation and scams).
Energy concerns (mining was deemed wasteful).
Control over monetary policy (avoiding competition with the yuan).
Can Chinese Still Trade Crypto?
Some use VPNs, offshore accounts, or P2P trading, but risks remain high.
Penalties for businesses facilitating crypto transactions can be severe. $BTC #ProjectCrypto