China crypto ban: What happened, who it affected, and how traders adapted

When China crypto ban, a sweeping government crackdown on cryptocurrency mining and trading that began in 2021 and intensified through 2023. Also known as China's crypto prohibition, it didn’t just restrict coins—it rewired how billions of people think about money, ownership, and access to global finance. This wasn’t a minor policy shift. It was the largest single action against digital assets in history. The government shut down mining farms, blocked exchanges, and pressured banks to cut off crypto-related accounts. The goal? To protect the yuan, maintain financial control, and stop capital flight. But the real story isn’t what they stopped—it’s what kept going anyway.

Behind the headlines, people found ways to trade. Bitcoin, the original decentralized digital currency that became the primary tool for bypassing financial restrictions didn’t disappear. It moved. P2P platforms like LocalBitcoins and Paxful saw massive spikes in volume as users traded directly with each other. Decentralized finance China, a network of non-custodial wallets, DEXs, and stablecoin bridges that allowed users to hold and move value without banks became the new backbone of crypto access. People used USDT and DAI to store wealth, traded through encrypted apps, and rotated wallets to avoid detection. Even with VPNs blocked and bank accounts frozen, the system adapted. It wasn’t perfect—but it worked.

What’s clear now is that bans don’t kill crypto—they just move it underground. The China crypto ban didn’t end trading; it made it smarter. Traders stopped relying on centralized exchanges and started using tools that didn’t need permission. They learned how to secure their own keys, how to spot fake airdrops (like the ones pretending to be from Chinese projects), and how to navigate regulatory gray zones. The same skills that helped people in Bangladesh, Nepal, and Russia survive their own crypto restrictions became essential in China too. And while the government still controls the surface, the deeper layer—the one powered by open-source code and peer-to-peer trust—keeps running.

What you’ll find below are real stories and breakdowns of how people kept trading, what tools they used, and how scams tried to take advantage of the chaos. From fake airdrops pretending to be Chinese projects to the hidden networks that kept crypto alive, these posts show the quiet resilience of a system built to be unstoppable.