Wondering if you can use Bitcoin, Ethereum, or any other digital coin to pay for coffee or software in China? The short answer is no - the mainland has a blanket ban on all crypto‑payment activities as of June 1 2025. Below we break down what the rule actually covers, how it’s enforced, and where the gray zones lie.
What "crypto payments in China" actually means
Crypto payments in China refers to any transaction where a private cryptocurrency is used as a medium of exchange within the borders of the People’s Republic of China. The ban applies to buying, selling, transferring, or settling any goods or services with decentralized tokens, regardless of whether the transaction happens on a centralized exchange, an OTC desk, or a peer‑to‑peer platform.
How the ban evolved - a quick timeline
- 2013 - People's Bank of China (PBOC) tells banks to stop handling Bitcoin transactions.
- September 2017 - Initial Coin Offerings (ICOs) are declared illegal.
- 2021 - Nationwide ban on cryptocurrency mining amid energy‑saving drives.
- May 30 2025 - PBOC issues a complete prohibition covering trading, mining, and ownership; it takes effect on June 1 2025.
- July 2025 - Shanghai State-owned Assets Supervision and Administration Commission (SASAC) holds meetings about stablecoins, but no policy shift is announced.
What exactly is prohibited?
The 2025 decree spells out four core bans:
- Providing or receiving crypto‑based payment for any domestic transaction.
- Operating a crypto exchange, whether centralized or decentralized.
- Mining, staking, or otherwise generating new crypto assets.
- Holding or transferring private cryptocurrencies in personal wallets.
If any of these actions are detected, authorities can seize assets, impose fines, and even pursue criminal charges.
Who enforces the rule and what are the penalties?
Multiple agencies coordinate on enforcement:
- Cyberspace Administration of China (CAC) monitors online platforms and can order takedowns of illegal services.
- The People's Bank of China (PBOC) oversees financial institutions and issues compliance warnings.
- Local public security bureaus conduct raids, seize hardware, and arrest individuals involved in unlicensed crypto activity.
Penalties range from administrative fines of up to ¥500,000 for minor violations to prison sentences of up to five years for organized illegal trading or fundraising.
Cross‑border blockchain use - a narrow exception
While domestic payments are shut down, China does allow blockchain‑based settlement in tightly controlled pilot projects. The most notable example is mBridge, a multi‑CBDC sandbox linking China’s digital yuan, Hong Kong’s e‑Hong Kong Dollar, Thailand’s digital Baht, and the UAE’s digital Dirham. mBridge has processed millions of dollars in cross‑border settlements, proving that the government is comfortable with blockchain when it serves state‑backed digital currencies.
These sandboxes require licenses, strict data reporting, and a clear separation from private crypto tokens. In practice, the only crypto‑related activity you might see in China is the use of the official digital currency - the e‑CNY (digital yuan) - for cross‑border payments under approved frameworks.
How China’s stance compares with neighboring markets
| Aspect | China | Singapore | Hong Kong |
|---|---|---|---|
| Domestic crypto payments | Completely prohibited | Allowed under MAS‑licensed stablecoin framework | Allowed with SFC‑licensed exchanges |
| Crypto mining | Banned nationwide since 2021 | Permitted with environmental compliance | Permitted, subject to electricity regulations |
| Stablecoin use | Only in government sandboxes | Regulated, must be backed 1:1 by fiat | Regulated, subject to SFC oversight |
| Official digital currency | e‑CNY (state‑issued CBDC) | No official CBDC (considering) | No official CBDC (considering) |
| Cross‑border blockchain pilots | mBridge sandbox (state‑controlled) | Various fintech sandbox projects | International settlement pilots under SFC |
What businesses and individuals should do today
- Stop using any private crypto for domestic payments in China. Even occasional peer‑to‑peer transfers can trigger investigations.
- If you run a fintech platform, disable crypto‑related features for Chinese users and replace them with e‑CNY or traditional payment methods.
- For cross‑border traders, explore licensed sandbox programs that connect to the e‑CNY network. Partnering with a Chinese‑registered entity can smooth compliance.
- Keep records of any crypto holdings abroad and be ready to disclose them if authorities request information.
- Monitor official communications from the PBOC, CAC, and SASAC for any policy tweaks. The regulatory climate can shift, especially around stablecoin pilots.
In short, treat the mainland as a crypto‑payment dead zone and look to the digital yuan for any legitimate settlement that involves China.
Frequently Asked Questions
Can I buy goods on Chinese e‑commerce sites with Bitcoin?
No. All major Chinese marketplaces (Taobao, JD.com, etc.) block crypto wallets and only accept yuan, e‑CNY, or other state‑approved methods.
Is holding Bitcoin in a foreign exchange legal for a Chinese resident?
Technically, the 2025 law criminalizes ownership of private crypto, even if the asset sits on an offshore exchange. Enforcement focuses on domestic activity, but penalties can still apply if authorities trace the holdings.
Can businesses use the e‑CNY to settle cross‑border invoices?
Yes, but only through approved sandbox projects like mBridge. The settlement must be routed via a licensed Chinese financial institution.
What are the penalties for illegal crypto mining?
The government can confiscate hardware, fine operators up to ¥500,000, and impose up to three years in prison for organized mining operations.
Will the ban on crypto payments change soon?
Experts say a major shift is unlikely in the short term because the Chinese government is pushing the e‑CNY. However, sandbox programs may expand, offering limited cross‑border use cases.
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