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
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
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.Can I use Bitcoin to pay for goods in China?
No. As of June 1, 2025, accepting or using Bitcoin or any other cryptocurrency as payment is illegal in mainland China. Businesses that do so risk fines, asset seizures, and criminal charges. Even individuals who pay with crypto can be penalized.
Is owning cryptocurrency illegal in China?
Yes. The 2025 ban by the People’s Bank of China explicitly criminalizes holding cryptocurrency, even if you didn’t buy it. Simply having Bitcoin, Ethereum, or stablecoins in a wallet can lead to asset freezes and legal action. Courts no longer recognize crypto ownership as legally protected.
Can I mine crypto in China?
No. Crypto mining has been banned nationwide since 2021. In 2025, the ban was strengthened with new enforcement tools, including power grid monitoring and mandatory reporting of mining equipment purchases. Any mining activity, even small-scale, is considered illegal.
What’s the difference between e-CNY and Bitcoin?
e-CNY is China’s official digital currency, issued and controlled by the central bank. Every transaction is tracked, and the government can freeze or block payments. Bitcoin is decentralized, anonymous, and not backed by any government. China allows e-CNY because it gives the state full control-Bitcoin threatens that control.
Can I use crypto for international transactions from China?
Not directly. You can’t use Bitcoin or Ethereum to pay a foreign vendor from within China. However, Chinese companies can use the government’s mBridge system-based on the e-CNY-to settle cross-border payments via blockchain. This is state-approved and tightly controlled, but it does not involve private cryptocurrencies.
Are there any legal crypto payment gateways in China?
No. All crypto payment gateways, whether domestic or foreign, are banned from operating in China. Any company offering crypto payment processing to Chinese customers is violating the law. Payment processors like Alipay and WeChat Pay only support the e-CNY and traditional fiat currency.
What happens if I send crypto to someone in China?
If the recipient is in mainland China and receives crypto, they are now in possession of an illegal asset. Their bank account could be flagged, their wallet seized, or they could face legal consequences. Sending crypto to someone in China carries legal risk for both parties.
Will China ever allow crypto payments again?
It’s extremely unlikely in the near term. China’s entire financial strategy is built around the e-CNY and state control over money. Crypto represents a threat to that control. While blockchain technology may be used for cross-border settlements, private cryptocurrencies will remain banned to protect monetary sovereignty and capital controls.
christopher charles
January 5, 2026 AT 13:02Man, this is wild. I mean, China just went full dystopian on crypto-no gray areas, no warnings, just ‘you’re breaking the law’ with a side of asset seizures. Feels like they’re trying to build a financial panopticon.
Amy Garrett
January 7, 2026 AT 02:35so… if i get paid in btc and im in china… do they just take my phone? 😅
Michelle Slayden
January 8, 2026 AT 10:46The philosophical implications of this policy are profound. By criminalizing private ownership of decentralized monetary instruments, the state asserts not merely regulatory authority, but ontological control over value itself. Money, once a social contract, becomes a state-issued administrative function. This is not economic policy-it is epistemological domination.
Alison Hall
January 9, 2026 AT 00:03Just use e-CNY. It’s fast, easy, and you won’t get in trouble. Seriously, why risk it? 🙌
Kevin Gilchrist
January 10, 2026 AT 23:49They’re not banning crypto-they’re banning freedom. 💀 The moment you let the state track every coffee purchase, you’ve already lost. I’d rather be broke than monitored.
Gavin Hill
January 12, 2026 AT 04:44It’s interesting how the same government that bans crypto is building blockchain infrastructure for cross-border payments. The contradiction is almost poetic. Control isn’t rejected-it’s redefined.
Khaitlynn Ashworth
January 12, 2026 AT 23:17Oh wow, so China’s the only country that’s ‘anti-crypto’? Wow. What a surprise. Next you’ll tell me the sun rises in the east. 🤡
Bianca Martins
January 13, 2026 AT 15:01I’ve been using e-CNY in Shanghai for months. It’s actually kinda nice-no fees, works offline, even my grandma uses it. But yeah, creepy that the government sees every transaction. Kinda like paying with a live camera on your wallet.
alvin mislang
January 15, 2026 AT 09:50China’s right. Crypto is for criminals, tax evaders, and idiots who think ‘decentralized’ means ‘untraceable.’ The e-CNY is the future. Get on board or get left behind. 🇨🇳
Monty Burn
January 16, 2026 AT 04:26They’re not banning crypto they’re banning trust in the system. When you can’t own value outside the state’s ledger, you’re not a citizen-you’re a data point
Kenneth Mclaren
January 18, 2026 AT 00:40Wait… this is all a setup. The PBOC is using this ban to force everyone into e-CNY so they can trigger mass asset freezes during the next ‘economic reset.’ They’ve already planted the trigger. Don’t believe me? Look at the timing-right before the dollar collapse. 🤫
Alexandra Wright
January 19, 2026 AT 10:41Oh sweetie, you think this is extreme? Try living under a regime that bans your right to think differently. At least here, they’re just banning money. In some places, they ban ideas. So chill. The e-CNY isn’t evil-it’s just a tool. And tools don’t have morals. People do.
Jack and Christine Smith
January 19, 2026 AT 23:43so like… if i send my cousin in beijing some eth for his birthday… is that a crime? because i just did it and now i’m panicking 😭
Jackson Storm
January 20, 2026 AT 09:01hey i just learned this and i’m so hyped-china’s using blockchain for cross-border trade but not for crypto? that’s actually genius. they’re taking the tech without the chaos. smart move. e-cny is the future for sure
Raja Oleholeh
January 20, 2026 AT 13:42Good. Crypto is western chaos. China builds. Others break. 🇨🇳
Vernon Hughes
January 21, 2026 AT 22:51The e-CNY isn't just digital money-it's the next phase of state surveillance infrastructure. The West talks about privacy. China built a financial system where privacy is a bug, not a feature. And it works-for them.
NIKHIL CHHOKAR
January 22, 2026 AT 06:41Let me tell you something. In India we don’t ban crypto-we regulate it. We let people choose. China’s fear of freedom is their greatest weakness. You can’t control money without controlling minds. And minds don’t like being controlled.
Johnny Delirious
January 23, 2026 AT 18:02It is imperative to recognize that the People’s Bank of China’s 2025 directive constitutes a paradigmatic shift in monetary sovereignty. The criminalization of non-state-issued digital assets represents not merely fiscal policy, but a metaphysical assertion of state authority over economic agency. This is not merely regulation-it is the institutionalization of economic determinism.
Emily L
January 24, 2026 AT 10:55So you’re telling me I can’t pay for my dumplings with Bitcoin? That’s literally the saddest thing I’ve heard all week. I’m moving to Thailand.