Chinese Crypto Laws: What’s Banned, What’s Allowed, and How It Changed Crypto

When we talk about Chinese crypto laws, the strict regulatory framework imposed by China’s government to control cryptocurrency use and mining. Also known as China’s cryptocurrency ban, it’s one of the most aggressive crypto policies ever enacted by a major economy. It didn’t just slow things down—it shut entire industries off overnight.

Back in 2021, China didn’t just regulate crypto—it erased it from its financial landscape. All crypto mining, the process of validating blockchain transactions using powerful computers, often powered by cheap electricity was banned. Thousands of mining farms in Sichuan, Inner Mongolia, and Xinjiang were shut down, their hardware sold off or scrapped. At the same time, crypto exchanges, online platforms where users trade Bitcoin, Ethereum, and other tokens like Binance and Huobi were forced to stop serving Chinese users. Even peer-to-peer trading got shadowed by bank account freezes and warnings from the central bank. Meanwhile, the digital yuan, China’s state-backed central bank digital currency (CBDC) designed to replace cash and control financial flows rolled out quietly, with millions already using it for daily payments.

These moves weren’t random. China’s goal was simple: keep control. Crypto threatened its monopoly over money. Bitcoin and Ethereum couldn’t be tracked, taxed, or stopped by the People’s Bank of China. The digital yuan, though, could be monitored down to the last cent. And while regular people still found ways to trade crypto via P2P apps or offshore platforms, the legal risk skyrocketed. Banks started flagging transactions linked to crypto wallets. Wallets got frozen. People lost money. The crackdown wasn’t just about money—it was about power.

Outside China, the ripple effects were huge. Mining hardware prices crashed. Ethereum miners fled to Kazakhstan, the U.S., and Canada. Crypto prices dipped hard. But the real story? China didn’t kill crypto—it moved it. The ban pushed innovation offshore and forced the world to rethink how decentralized finance could survive under authoritarian control. Today, China’s crypto laws remain locked in place. No legal exchanges. No mining. No public trading. But the digital yuan? It’s growing. And that’s the real shift.

Below, you’ll find real stories from people who lived through the ban, deep dives into how the digital yuan works, and reviews of platforms that still let users trade crypto under the radar—even in China’s shadow.