Crypto in China: The Full Ban and What It Means for Users

When it comes to crypto in China, a complete government prohibition on all cryptocurrency activities, including trading, mining, and holding. Also known as China’s crypto ban, it’s one of the strictest and most consistently enforced policies in the world. Unlike countries that regulate crypto with licensing or taxes, China doesn’t just discourage it—it makes it illegal. Owning Bitcoin, using Binance, or mining Ethereum can land you in legal trouble. This isn’t a gray area. The law is clear: no crypto, period.

The ban isn’t just about controlling money—it’s about control. The government sees decentralized finance as a threat to its monetary authority. That’s why it pushed the e-CNY China, the digital yuan, a state-controlled cryptocurrency issued by the People’s Bank of China. Also known as digital yuan, it’s designed to track every transaction, eliminate cash anonymity, and replace private crypto entirely. While the rest of the world debates whether crypto is money, technology, or speculation, China decided it’s a risk to national stability. Mining farms were shut down overnight. Exchanges were forced to leave. Wallets were monitored. Even peer-to-peer trading became dangerous.

People still find ways around it—using VPNs, foreign exchanges, or converting crypto to stablecoins and moving it offshore. But the risks are real. In 2024, a man in Guangdong got a three-year sentence for running a crypto mining rig in his garage. Another was fined for using Binance to pay for goods online. Enforcement isn’t random—it’s systematic. The state uses AI to track blockchain addresses linked to Chinese IP addresses. Banks freeze accounts if they detect crypto-related transfers. Even talking about crypto in public forums can attract attention.

What’s left is a quiet underground. Some traders use cash-based P2P deals. Others rely on overseas wallets and trusted contacts. But the era of open crypto markets in China is over. The crypto mining China, once the global leader in Bitcoin mining, now has nearly zero legal operations. Also known as Chinese crypto mining, it’s been replaced by state-approved energy projects and AI data centers. The government didn’t just ban crypto—it rewrote the rules of digital finance in its own image.

If you’re reading this because you’re curious about crypto in China, you’re not alone. Many people wonder if the ban will ever lift. The answer? Not anytime soon. The e-CNY is too central to the government’s financial future. Crypto is too unpredictable. And control is too valuable to give up. What you’ll find below isn’t a list of workarounds or hacks. It’s a collection of real stories, legal warnings, and enforcement cases that show exactly how deep the ban goes—and what happens when you cross the line.