Crypto Trading China: What's Really Happening and How It Affects You

When it comes to crypto trading China, the practice of buying, selling, or exchanging cryptocurrencies within mainland China. Also known as cryptocurrency trading in China, it’s not just restricted—it’s completely illegal as of June 1, 2025. The Chinese government doesn’t just discourage crypto. It actively shuts it down. No exchanges, no mining, no peer-to-peer trades. Even holding crypto can trigger investigations. This isn’t a policy shift—it’s the final step in a 16-year plan to replace decentralized money with the state-controlled digital yuan, China’s official central bank digital currency issued by the People’s Bank of China.

How do they make sure it sticks? Through Alipay, the dominant mobile payment app owned by Ant Group, used by over 1 billion people in China. Also known as Alipay wallet, it acts as a financial firewall, blocking any transaction linked to crypto exchanges or wallet addresses. Same with WeChat Pay, the payment system inside the WeChat app, which handles everything from groceries to rent in China. Also known as WeChat wallet, it scans transaction patterns and flags anyone trying to send money to known crypto platforms. These aren’t just apps—they’re surveillance tools. If you try to buy Bitcoin through a friend’s QR code, or send funds to a Binance wallet, the system detects it. Your account gets flagged. Your money gets frozen. You might get a visit from local authorities.

And it’s not just about control. The digital yuan is designed to track every penny you spend. The government sees crypto as a threat to monetary sovereignty. It can’t tax anonymous coins. It can’t control inflation if people flee to Bitcoin. So they eliminated the competition. No gray areas. No loopholes. Even foreign exchanges can’t legally serve Chinese users anymore. If you’re outside China and trading crypto, you’re fine. But if you’re inside China, even using a VPN to access Binance or KuCoin can get you in trouble.

What you’ll find here isn’t speculation. It’s documentation. Real cases of asset seizures. How enforcement works behind the scenes. Why Chinese traders switched to offshore platforms—or gave up entirely. And how the digital yuan is already replacing cash in cities like Shanghai and Shenzhen. These aren’t hypotheticals. They’re happening right now. You’ll read about the exact methods used to block transactions, the penalties for violations, and why even asking about crypto in certain online forums can lead to account bans. This isn’t about politics. It’s about what’s possible when a government controls the payment system—and decides crypto has no place in it.