Crypto Ban China: What Happened and How It Changed Global Crypto

When China cryptocurrency ban, a sweeping government policy that outlawed cryptocurrency trading, mining, and exchange operations within China’s borders. Also known as Chinese crypto regulations, it didn’t just slow down crypto—it redirected the entire industry’s flow. In 2021, China didn’t just restrict crypto—it erased it from its digital landscape overnight. Banks were told to cut off services. Mining farms were shut down. Exchanges like Binance and Huobi lost millions of users in weeks. This wasn’t a policy tweak. It was a full-scale digital purge.

The crypto mining ban, a core part of China’s crackdown that targeted energy-intensive Bitcoin and Ethereum mining operations. Also known as crypto mining restrictions, it forced over 70% of global Bitcoin mining offline. China had been the world’s mining hub, thanks to cheap hydropower and state-subsidized electricity. When the government pulled the plug, miners fled to the U.S., Kazakhstan, and Nigeria. The hash rate dropped by half in months, but Bitcoin kept going. The market didn’t collapse—it decentralized. Meanwhile, the digital yuan, China’s state-backed digital currency designed to replace cash and control financial flows. Also known as e-CNY, it became the centerpiece of China’s financial future. While private crypto was banned, the government pushed its own version hard, giving the People’s Bank of China total visibility into every transaction. This wasn’t about stopping innovation—it was about controlling it.

The crypto exchange crackdown, the systematic shutdown of domestic and foreign crypto platforms operating in China. Also known as crypto exchange ban, it forced platforms to either leave or go dark. Binance, OKX, and others scrambled to move users offshore. Many turned to P2P trading—using apps like LocalBitcoins or Paxful with bank transfers and WeChat payments. This underground market still thrives today, even if it’s risky. And while China’s ban made headlines, it also pushed other countries to rethink their own rules. Some followed China’s lead. Others doubled down on crypto freedom. The result? A fractured global crypto map—with China isolated, and the rest of the world scrambling to fill the void.

What you’ll find below are real stories from the frontlines: how traders in Bangladesh and Russia bypassed similar bans, how fake exchanges popped up to exploit confusion, and why some crypto projects vanished the moment regulators showed up. These aren’t theory pieces. They’re case studies from people who lived through it.