Are Crypto Payments Allowed in China? The 2025 Ban Explained

As of 2025, crypto payments are completely illegal in mainland China. There are no exceptions, no loopholes, and no legal way for businesses or individuals to accept Bitcoin, Ethereum, or any other cryptocurrency as payment for goods or services inside the country. This isn’t a gray area-it’s a hard ban backed by criminal penalties.

How China Got to a Total Crypto Ban

China didn’t wake up one day and decide to ban crypto. It was a slow, deliberate process that started over a decade ago. In 2013, banks were told not to process Bitcoin transactions. By 2017, all domestic crypto exchanges were shut down, and initial coin offerings (ICOs) were banned. Then in 2021, mining operations-once a major part of China’s crypto economy-were outlawed nationwide. Power grids were cut, hardware was seized, and miners fled to other countries.

The final piece came on May 30, 2025, when the People’s Bank of China (PBOC) issued a sweeping order that made it illegal to even own cryptocurrency. The rule took effect June 1, 2025, and it didn’t just target exchanges or miners. It went after individuals. Holding crypto in a wallet, using it to pay for something, or even receiving it as a gift can now lead to fines, asset freezes, or criminal charges.

What’s Actually Banned?

The 2025 ban covers every possible use of cryptocurrency within China’s borders:

• Buying or selling crypto on any exchange-domestic or foreign-while inside China
• Accepting crypto as payment for products or services
• Mining cryptocurrency using any hardware, even at home
• Transferring crypto to or from offshore wallets
• Using decentralized finance (DeFi) platforms or crypto lending services
• Trading stablecoins like USDT or USDC, even if they’re pegged to the U.S. dollar

The government doesn’t just rely on warnings. Enforcement is real. In 2024, over 200 people were arrested for crypto-related activities. In early 2025, authorities seized more than $80 million in crypto assets from individuals and businesses. The Cyberspace Administration of China (CAC) now requires companies handling personal data to report any crypto-related transactions involving their employees or customers.

What About Cross-Border Payments?

Here’s where things get complicated. While you can’t use Bitcoin to buy coffee in Shanghai, China is actively building a system for cross-border blockchain payments. The mBridge project-a collaboration between China, Hong Kong, Thailand, and the UAE-uses blockchain technology to settle international transactions in real time using central bank digital currencies (CBDCs).

This isn’t crypto. It’s not decentralized. It’s not private. It’s the Chinese government’s own digital currency, the e-CNY, being used to move money between central banks. The goal? To bypass the U.S. dollar in global trade and reduce reliance on Western financial systems. The mBridge pilot has already processed over $150 million in trial settlements.

So while you can’t pay your rent in Ethereum, a Chinese company can use the e-CNY to settle a payment with a Thai supplier via blockchain-without touching any private cryptocurrency.

The e-CNY: China’s Answer to Crypto

China’s real focus isn’t stopping innovation-it’s controlling it. The e-CNY, or digital yuan, is the centerpiece of that strategy. Launched in 2020 and now active in over 200 cities, it’s a digital version of the Chinese yuan, issued and monitored entirely by the central bank.

Unlike Bitcoin, where transactions are pseudonymous, every e-CNY transaction is tracked. The government knows who paid whom, when, and for what. That’s exactly what they want. It helps prevent money laundering, tax evasion, and capital flight-all things China has spent decades trying to control.

The e-CNY also integrates directly with China’s massive digital payment ecosystem. You can use it in Alipay and WeChat Pay. It works offline. It’s fast. It’s convenient. And it’s completely under state control.

How This Compares to Other Countries

China’s stance is extreme-even by global standards. In Singapore, stablecoins are regulated and legal. In Hong Kong, crypto exchanges are licensed and operating. In the U.S., crypto is taxed, but not banned. In Japan, it’s recognized as legal property.

China is the only major economy that treats holding crypto as a legal risk. Even Russia, which has strict capital controls, allows crypto trading under certain conditions. China doesn’t just regulate-it criminalizes.

This makes China a unique outlier. It’s not trying to lead in crypto innovation-it’s trying to prevent it from ever taking root domestically. The message is clear: the state controls money, not markets.

What Happens If You Try to Use Crypto in China?

If you’re a tourist, a business traveler, or an expat living in China and you try to pay for something with Bitcoin, you won’t get arrested on the spot. But you’re breaking the law. If you’re caught-say, by using a crypto payment app or transferring funds to an offshore wallet-you could face:

• Freezing of your bank accounts
• Confiscation of any crypto assets you hold
• Being flagged by China’s social credit system
• Criminal investigation if the amount is large or linked to suspected capital flight

Foreign companies operating in China are under even more pressure. If a U.S.-based SaaS provider tries to accept crypto payments from Chinese customers, they could be blocked from doing business in China entirely. Banks and payment processors are required to monitor and report any suspicious activity.

Is There Any Way Around the Ban?

Technically, yes-but it’s risky and not legal. Some people still use peer-to-peer (P2P) platforms to buy crypto with bank transfers, often through unofficial OTC traders. Others use VPNs to access foreign exchanges. But these methods are not protected by law. If you get caught, you have no recourse. The courts won’t help you recover lost funds. In fact, since 2022, Chinese courts have ruled that crypto-related contracts are invalid and unenforceable.

The only safe path is to use the e-CNY. If you’re in China, that’s your digital payment option. No crypto. No risk. No gray area.

What’s Next for Crypto in China?

Don’t expect the ban to lift anytime soon. The government has invested billions into the e-CNY and views it as critical to maintaining monetary sovereignty. The July 2025 meeting in Shanghai about stablecoins didn’t signal a policy shift-it was a strategy session on how to contain them.

The only area where crypto-related tech might grow is in blockchain infrastructure for international trade. But even there, it’s not about Bitcoin or Ethereum. It’s about state-controlled digital ledgers.

China’s future with crypto isn’t about adoption-it’s about exclusion. The country has chosen a path where digital money exists, but only if the state owns it, tracks it, and controls every transaction.