China cryptocurrency restrictions: What’s banned, why it matters, and how it shapes global crypto

When we talk about China cryptocurrency restrictions, a sweeping government crackdown that banned crypto trading, mining, and exchanges in 2021 and tightened further through 2025. Also known as crypto ban China, it wasn’t just a policy shift—it was a complete reordering of how digital assets could operate inside the country. Unlike other nations that tried to regulate crypto with licensing or taxes, China didn’t just limit it—they erased it from public view. Banks were ordered to cut off services to crypto platforms. Mining farms were shut down overnight. Even peer-to-peer trading got risky. The goal? Replace decentralized money with something the state fully controls: the digital yuan, China’s central bank digital currency (CBDC) designed to track every transaction and eliminate financial anonymity. Also known as e-CNY, it’s not just a payment tool—it’s a surveillance system wrapped in code.

Why did China do this? Because crypto threatened their control. Bitcoin and Ethereum let people move money without asking permission. Miners in Sichuan used cheap hydropower to run massive farms. Traders bypassed capital controls using decentralized exchanges. The PBOC crypto policy, the People’s Bank of China’s strict stance against private digital currencies. Also known as central bank digital currency policy, it wasn’t about protecting investors—it was about preserving the state’s monopoly on money. While the U.S. debated rules, China moved fast. By 2023, even VPNs used to access foreign exchanges were being blocked. By 2025, anyone caught running a crypto node could face fines or worse. The ripple effect? Global exchanges like Binance and OKX moved their headquarters out of China. Mining hardware manufacturers shifted to Kazakhstan and the U.S. And suddenly, the world saw what happens when a government decides crypto has no place in its future.

But here’s the twist: the ban didn’t kill crypto in China—it just drove it underground. Some traders still use over-the-counter (OTC) desks with cash. Others trade through encrypted apps with anonymous contacts. And while the government pushes the digital yuan hard, adoption is slow. People still trust cash or gold more than a government-monitored wallet. The China cryptocurrency restrictions didn’t end crypto—they made it harder, riskier, and more secretive. What you’ll find below are real stories of how people navigated these rules, what platforms got caught in the crossfire, and how China’s choices pushed the rest of the world to rethink regulation, privacy, and control.