China

Prohibited Partly Confirmed

Mainland China prohibits virtual-currency exchange, token fundraising and related financial services. Crypto is not legal tender, and authorities also restrict commercial mining.

People's Bank of China / National Development and Reform Commission

Total Laws (incl. applicable EU-wide)

Effective Laws

At a Glance

Is holding crypto allowed?

Restricted

Is crypto trading allowed?

Prohibited

Is P2P trading allowed?

Prohibited

Are crypto payments allowed?

Prohibited

Is crypto legal tender?

Is mining allowed?

Prohibited

Is staking allowed?

Prohibited

Is DeFi participation allowed?

Prohibited

Are stablecoins allowed or regulated?

Prohibited

Activity Status Matrix

Activity	Status	Details
Holding Crypto	Restricted	Is holding crypto allowed?
Crypto Trading	Prohibited	Is crypto trading allowed?
P2P Trading	Prohibited	Is P2P trading allowed?
Crypto Payments	Prohibited	Are crypto payments allowed?
Legal Tender	No	Is crypto legal tender?
Mining	Prohibited	Is mining allowed?
Staking	Prohibited	Is staking allowed?
DeFi	Prohibited	Is DeFi participation allowed?
Stablecoins	Prohibited	Are stablecoins allowed or regulated?
NFTs	Restricted	Are NFTs allowed or regulated?
Token Launches	Prohibited	Are token launches allowed?
Crypto Advertising	Prohibited	Is crypto advertising allowed?
Banking Access	Prohibited	Do crypto businesses have banking access?

Regulation Overview

Mainland Chinese authorities treat virtual-currency-related business activity as illegal financial activity. Financial institutions and payment companies may not provide services for virtual-currency transactions, and overseas exchanges serving mainland residents are targeted. Token issuance and exchange services are prohibited. Authorities also placed virtual-currency mining in a restricted/eliminated policy category. Blockchain technology and the state digital renminbi are distinct from privately issued crypto assets.

Tax Information

There is no ordinary authorised retail crypto market on which to base a simple tax treatment. Any historic asset, enforcement or cross-border tax issue must be reviewed together with the prohibitions.

Individual Tax Treatment

Individuals should not assume that paying tax makes a prohibited transaction lawful. Seek specialist advice for historic holdings, disposal evidence or cross-border reporting.

Business Tax Treatment

Businesses and financial institutions must not provide prohibited virtual-currency services. Tax, accounting, sanctions and enforcement consequences require transaction-specific advice.

State Taxation Administration

Business & Licensing

No general licence is available for private virtual-currency exchanges or token-fundraising businesses serving mainland China. Approved blockchain-information services are a separate regulatory category.

AML / KYC Requirements

Financial institutions must identify and stop prohibited virtual-currency activity and apply AML, account and suspicious-transaction controls under Chinese law.