Chinese crypto ban: What it means, how it works, and what traders do anyway

When China cracked down on cryptocurrency, it didn’t just say "no"—it built a wall. The Chinese crypto ban, a sweeping government policy that prohibits all crypto trading, mining, and exchange services within mainland China. Also known as China’s cryptocurrency prohibition, it’s one of the strictest and most enforced digital asset bans in the world. Unlike other countries that regulate crypto, China made it illegal to even run a crypto exchange on its soil. The People’s Bank of China (PBOC) didn’t just issue a warning—they shut down platforms, blocked domains, and pressured banks to cut off crypto-related accounts overnight.

But here’s the twist: Alipay, China’s dominant digital payment app owned by Ant Group. Also known as Alipay mobile wallet, it’s now a key enforcer of the ban. Alongside WeChat Pay, the other half of China’s digital payment duopoly, used by over a billion people daily. Also known as WeChat payment system, it’s not just a messenger app—it’s the gatekeeper of money. These apps scan every transaction. If you try to send money to a crypto exchange, even indirectly, Alipay or WeChat Pay freezes it. They flag users who search for crypto terms, block payments to foreign wallets, and report suspicious activity to regulators. The result? No direct buys. No easy swaps. No legal on-ramps.

So how did traders move $86.4 billion in crypto between 2022 and 2023? They went underground. Peer-to-peer trades. Cash meetups. VPNs. Localized OTC desks. Some used offshore exchanges with Chinese-language support. Others traded through friends, family, or trusted networks. It’s not about tech—it’s about trust. The ban didn’t kill crypto in China. It forced it into the shadows, where risks are higher, but demand never faded. And while the government keeps cracking down on mining farms and exchange servers, the real battle is happening in private chats, encrypted apps, and untraceable bank transfers.

What you’ll find below isn’t just news about the ban. It’s a look at how people adapt, survive, and sometimes profit despite the rules. From how Alipay tracks your crypto habits to the real stories behind underground trading, these posts cut through the noise. No fluff. No speculation. Just what’s actually happening on the ground in China.