Crypto Payments in China: Are They Allowed in 2025?

Wondering if you can use Bitcoin, Ethereum, or any other digital coin to pay for a coffee or a hotel stay while in mainland China? The short answer is no - the country has a blanket ban on crypto payments that took effect in mid‑2025. Below we break down the legal backdrop, what the ban actually covers, and where - if anywhere - crypto still has a foothold in the Chinese financial system.

What the law says

Cryptocurrency is a digital asset that uses cryptography for security and operates on decentralized ledgers. In China, the People's Bank of China (People's Bank of China, PBOC) issued a sweeping prohibition on all crypto‑related activities on May 30, 2025, effective June 1, 2025. The decree explicitly bans:

• Trading of any cryptocurrency on domestic or foreign platforms.
• Mining operations, even if the mined coins are transferred abroad.
• Holding crypto assets for personal or corporate use.
• Using crypto for payment of goods and services within mainland China.

The regulation is enforced by multiple agencies, including the Cyberspace Administration of China (CAC) and the Ministry of Industry and Information Technology.

How the ban evolved

China’s crackdown didn’t happen overnight. It’s the culmination of a decade‑long tightening:

1. 2013 - banks barred from processing Bitcoin transactions.
2. September 2017 - Initial Coin Offerings (ICOs) declared illegal.
3. 2021 - nationwide ban on crypto mining.
4. June 2024 - arrests and asset seizures linked to unlicensed exchanges.
5. May 2025 - full criminalization of ownership, trading, and payment use.

Each step added layers of penalties, ranging from fines to criminal charges, making compliance a high‑risk game for anyone considering crypto payments.

What you can still do: cross‑border blockchain projects

While domestic crypto payments are off‑limits, the Chinese government does allow blockchain‑based solutions in tightly controlled, state‑approved sandboxes. The most visible example is the mBridge pilot - a multi‑Central Bank Digital Currency (CBDC) project that links the digital yuan (e‑CNY) with counterparts in Hong Kong, Thailand, and the UAE. Through mBridge, cross‑border settlements are settled in digital form, but the underlying assets are either e‑CNY or other sovereign digital currencies, not private cryptocurrencies.

In practice, this means a foreign business can settle a trade with a Chinese partner using a blockchain network, but the settlement token must be a state‑approved CBDC, not Bitcoin.

e‑CNY vs. private crypto: why China prefers its own digital yuan

The digital yuan, often called e‑CNY, is China’s official Central Bank Digital Currency. Unlike decentralized crypto, e‑CNY gives the PBOC full visibility into every transaction, which aligns with the government’s goals of financial stability and capital control.

• Pilot cities include Shenzhen, Suzhou, and Chengdu, with millions of wallets already active.
• Transactions are settled in real‑time, and the system can enforce anti‑money‑laundering rules automatically.
• Retail merchants can accept e‑CNY via QR codes much like Alipay or WeChat Pay.

Because e‑CNY is backed by the central bank, it carries no regulatory risk for businesses - a stark contrast to the legal uncertainty surrounding private crypto payments.

Comparative snapshot: China, Singapore, and Hong Kong

Practical implications for merchants and travelers

If you run an e‑commerce store that ships to China, you cannot list Bitcoin or any other crypto as a payment method for Chinese customers. Doing so could trigger investigations by the CAC, resulting in fines or even criminal prosecution for the business entity.

Travelers should also be cautious. While you can hold crypto in a foreign wallet, you cannot use it to pay for services in Mainland China. Instead, rely on local mobile‑payment apps (Alipay, WeChat Pay) or, where accepted, the digital yuan.

What to watch in the next few years

Analysts note two possible shifts:

• Expanded sandbox programs: The Shanghai State‑owned Assets Supervision and Administration Commission hinted at broader cross‑border sandbox trials in late 2025. If approved, more foreign firms could settle trades using e‑CNY‑linked blockchain networks.
• Policy softening on stablecoins: While private crypto payments remain banned, the government may ease restrictions on regulated stablecoins that can be pegged to the yuan, provided they operate under strict oversight.

Until official guidance changes, the safest route is to treat crypto payments as illegal in mainland China and focus on e‑CNY or traditional fiat channels.

Quick checklist for businesses

• Do not accept any cryptocurrency for goods or services in China.
• Remove crypto payment buttons from Chinese versions of your website.
• Consider integrating e‑CNY via approved partnerships if you need a digital‑currency solution.
• Stay updated on sandbox announcements from the PBOC and the CAC.
• Maintain records of all cross‑border transactions for AML compliance.