Cryptocurrency Seizures China: How the Government Blocks Crypto and What Traders Do Anyway

When you hear about cryptocurrency seizures China, the Chinese government’s aggressive actions to confiscate digital assets and shut down trading channels. Also known as crypto crackdown, it’s not just about stopping people from buying Bitcoin—it’s about controlling money itself. Since 2021, China has made owning, trading, or mining crypto illegal. But here’s the twist: people are still doing it. In 2022-2023 alone, an estimated $86.4 billion in crypto moved through underground networks inside China. That’s not small-time. That’s a full-blown parallel financial system running under the radar.

How does the government pull this off? It doesn’t need to raid homes or freeze wallets directly. It uses tools you use every day: Alipay, China’s dominant mobile payment app that acts as a financial gatekeeper. Also known as payment surveillance system, it blocks any transaction linked to crypto exchanges. Same with WeChat Pay, the messaging app that doubles as a bank, monitoring every transfer for signs of crypto activity. Also known as financial firewall, it flags accounts that send money to known exchange wallets. If you try to buy crypto using either, your payment gets rejected. Your account might get locked. Your name could end up on a watchlist.

So what do people do? They turn to peer-to-peer trades, cash deals, and offshore platforms. Some use VPNs to access foreign exchanges. Others trade through shell companies or trusted friends who hold crypto abroad. The risk? Huge. If caught, you could lose your money, face fines, or worse. But for many, the reward—access to global markets, hedge against inflation, or just the freedom to control their own money—is worth it.

This isn’t about banning technology. It’s about control. China wants to keep all financial activity inside its state-run system. That’s why it pushed its own digital yuan and shut down everything else. But money doesn’t care about borders or bans. And when people are determined enough, they find a way.

Below, you’ll find real stories from inside China’s crypto underground. You’ll see how Alipay and WeChat Pay enforce the ban, how traders evade detection, and why even a total ban can’t kill demand. These aren’t theories. They’re documented cases, user reports, and technical breakdowns from people who’ve lived it.