Crypto Exchange Safety Checker
Important Legal Notice
As of June 1, 2025, ALL cryptocurrency exchanges are illegal for Chinese residents to use, regardless of where they're based. This includes centralized exchanges (Binance, Coinbase), decentralized exchanges (Uniswap), and even holding crypto in personal wallets.
Using any crypto service can result in asset seizure, account freezes, fines up to 5x the value of your holdings, and potential criminal charges. There are no exceptions.
As of June 1, 2025, every cryptocurrency exchange is illegal for Chinese residents to use. Not some. Not most. All. That includes Binance, OKX, Kraken, Coinbase, Huobi, KuCoin, Gate.io - every single one. It doesn’t matter if the exchange is based in the Cayman Islands, Singapore, or the United States. If you’re a Chinese citizen living in China, accessing any of them is a direct violation of the law.
There Are No Legal Crypto Exchanges in China - Not Even One
People still ask, "What about Huobi? Isn’t that a Chinese exchange?" Huobi was founded in China. It used to be one of the biggest platforms for Chinese traders. But after the 2021 mining ban and the 2023 crackdown on OTC desks, Huobi shut down all China-based operations and moved its headquarters overseas. That doesn’t make it safe for you to use. The 2025 PBOC decree explicitly bans any exchange from serving Chinese residents, regardless of where it’s registered. Using Huobi now is just as illegal as using Binance.Same with OKX. Same with Bitfinex. Same with decentralized exchanges like Uniswap or PancakeSwap. If you’re using a wallet, swapping tokens, or trading crypto through any platform - and you’re in China - you’re breaking the law. The government doesn’t care if you think it’s "just a hobby" or "not real money." The law doesn’t make exceptions.
What the 2025 Ban Actually Covers
The June 2025 regulation isn’t just about stopping you from signing up on a website. It’s a total system-wide shutdown of crypto activity. Here’s what’s banned:- Trading crypto on any exchange - centralized or decentralized
- Mining Bitcoin or any other cryptocurrency
- Running or operating an OTC desk for crypto
- Using crypto to pay for goods or services
- Hosting or promoting crypto-related content on websites or apps
- Providing wallet services, API access, or crypto-related software
- Even holding crypto in a personal wallet - if discovered, authorities can seize it
Financial institutions - banks, Alipay, WeChat Pay - are required to monitor all transactions for crypto-linked activity. If your account suddenly sends money to a known crypto OTC operator, or receives funds from a wallet flagged as associated with a banned exchange, your account will be frozen. You’ll be asked to explain. If you can’t prove it’s not crypto-related, you could face fines or criminal charges.
How They Catch You
You might think, "I’ll just use a VPN and be fine." That’s not how it works anymore. The Chinese government has spent years building a digital surveillance system specifically to track crypto activity. Here’s how they find people:- Internet service providers are legally required to block access to all known crypto exchange domains and apps
- Mobile app stores in China (including third-party stores) are monitored - any app with crypto trading features is removed
- Blockchain analysis tools are used to trace wallet addresses linked to known banned exchanges
- Bank transaction patterns are scanned for signs of crypto-related payments - like sending money to a P2P trader or receiving a lump sum from an unknown source
- Whistleblower rewards are offered for reporting crypto activity - neighbors, coworkers, even family members can report you
There’s no "gray area." Even if you only bought $100 worth of Bitcoin in 2024 and never touched it again, if your wallet address is flagged and discovered during a routine audit, you can still be investigated. Asset seizure is automatic. Legal defense is nearly impossible.
Why This Ban Is Different From Other Countries
Compare this to the U.S., the EU, or Japan. In those places, crypto exchanges must register, follow KYC rules, report suspicious activity, and pay taxes. The government regulates - it doesn’t outlaw.In China, the goal isn’t regulation. It’s elimination. The People’s Bank of China doesn’t want you to trade crypto because it wants to control every yuan that moves through the financial system. That’s why they created the digital yuan - a state-controlled digital currency that tracks every transaction, down to the second. The digital yuan isn’t an alternative to Bitcoin. It’s the opposite: a tool for total financial surveillance.
China is the only country in the world that has banned every form of private cryptocurrency activity for its citizens. Even Russia and India allow some form of crypto trading under strict rules. China doesn’t. Zero tolerance. Full stop.
What Happens If You Get Caught
The penalties aren’t warnings. They’re real, and they’re severe.- Asset seizure: Any crypto in your wallet - Bitcoin, Ethereum, USDT - will be confiscated. No appeal.
- Bank account freeze: Your personal bank account, Alipay, and WeChat Pay may be locked for months while investigators review your transactions.
- Fines: Fines can reach up to five times the value of the crypto you held or traded.
- Criminal charges: If authorities believe you were involved in large-scale trading or money laundering, you could face criminal prosecution. This isn’t theoretical - there are documented cases of people being sentenced to prison for crypto trading after the 2021 crackdown.
There’s no "first offense" exception. The law doesn’t care if you didn’t know it was illegal. Ignorance isn’t a defense.
What You Can Do Instead
You can’t legally trade crypto in China. But you can still use digital financial tools - just not the ones involving Bitcoin or Ethereum.- Digital yuan (e-CNY): This is the only legal digital currency you can use. It’s issued by the PBOC, works through your phone, and is accepted at most stores and public services. It’s not decentralized. It’s not anonymous. But it’s legal.
- Alipay and WeChat Pay: These are your everyday payment tools. They’re safe, fast, and fully compliant.
- Government-approved investment products: Mutual funds, bonds, and bank wealth management products are legal and regulated. These are the only approved ways to grow your savings digitally.
Some people try to move money offshore and trade from abroad. That’s risky. If you’re a Chinese citizen, your financial activity is still monitored by Chinese authorities - even if you’re living in Thailand or Canada. If you send money back to China, or if your family members receive funds from your overseas account, those transactions can be flagged as crypto-related.
There Is No Safe Way Around This
You might read blogs or YouTube videos claiming you can "use a foreign SIM card," "trade on a private Telegram group," or "store crypto in a hardware wallet and never connect it to the internet." None of that works anymore.The 2025 ban includes a clause that makes it illegal to assist Chinese residents in accessing crypto - even if you’re outside China. That means if you help a friend in Beijing buy Bitcoin, even by accident, you could be breaking Chinese law. The reach of this regulation is global.
If you’re a Chinese resident, the only safe path is to avoid crypto entirely. Not "be careful." Not "use a VPN." Not "only trade small amounts." Avoid it completely. The cost of getting caught isn’t just financial - it’s personal, legal, and potentially life-altering.
What the Future Looks Like
There’s no sign the Chinese government is softening its stance. The digital yuan rollout continues to expand. More cities are mandating its use for public services. More banks are integrating it into their systems. The goal is clear: replace all private digital money with state-controlled digital money.Any future relaxation of crypto rules would require a complete policy reversal - something the government has shown no interest in. For now, and likely for years to come, the message is the same: if you’re in China, crypto is not an option. It’s a risk with no reward.
Can I use Binance if I’m outside China?
If you’re a Chinese citizen living abroad, Binance and other exchanges may allow you to keep your account open - but only if you’ve officially changed your residency and no longer have a Chinese ID or bank account linked to the platform. However, if you return to China and try to access your account, you’ll likely be blocked. Also, any funds you send back to China may be flagged and seized. The safest move is to close your crypto accounts if you plan to return.
Is holding Bitcoin in a hardware wallet legal?
No. The 2025 ban doesn’t distinguish between trading and holding. If authorities discover you own Bitcoin - even if it’s stored offline on a Ledger or Trezor - they can seize it. Blockchain analysis tools can trace wallet addresses to your identity through past transactions, IP logs, or bank transfers. There’s no such thing as "safe storage" under this law.
Can I trade crypto with friends using WeChat Pay?
Absolutely not. Any transaction involving crypto, even between friends, is illegal. If you send money to someone through WeChat Pay and they send you Bitcoin in return, both of you are violating the law. Authorities scan for patterns - like frequent transfers to the same person, or payments labeled with crypto-related terms like "BTC" or "USDT." These are red flags that trigger investigations.
What if I bought crypto before 2025?
Ownership before the ban doesn’t make it legal. If your crypto holdings are discovered during a financial audit, tax review, or bank investigation, they can still be seized. There’s no grandfather clause. The law applies retroactively to all assets, regardless of when they were acquired.
Are decentralized exchanges (DEXs) safer than centralized ones?
No. DEXs like Uniswap or PancakeSwap don’t require KYC, but they still operate on public blockchains. Chinese authorities use blockchain analytics to trace wallet addresses linked to known exchanges or OTC operators. If your wallet has ever interacted with a banned platform - even once - it’s flagged. Using a DEX doesn’t hide you. It just makes it harder to prove you didn’t know you were breaking the law.
Chris Hollis
This is the most accurate summary of China's crypto ban I've seen in months. No fluff, no hope, just facts. The digital yuan isn't progress-it's control wrapped in convenience.
Diana Smarandache
It is imperative to recognize that the People's Bank of China's stance is not merely regulatory-it is a foundational assertion of sovereign monetary authority. The elimination of private digital currencies is a necessary step toward financial stability and national security.
Allison Doumith
Think about it-we're not just talking about Bitcoin or Ethereum we're talking about the soul of financial freedom being crushed under the weight of a state-controlled ledger. Every transaction tracked, every movement monitored, every byte of autonomy erased. This isn't about money. It's about power. And power doesn't care if you're just trying to HODL your way to peace.
Scot Henry
Really appreciate this breakdown. I used to trade on KuCoin back in 2022 and had no idea how deep the crackdown would go. Now I just use Alipay and call it a day. Less stress, more sleep.
Sunidhi Arakere
China's approach is clear. No room for confusion. Simple rules. Safe for everyone.
Vivian Efthimiopoulou
Let us not mistake this ban for repression-it is, in fact, an act of profound responsibility. A civilization choosing collective stability over individual illusion. The digital yuan is not a prison; it is a foundation upon which equitable economic participation can be rebuilt. To cling to decentralized anonymity is to cling to a fantasy that never truly served the many.
Angie Martin-Schwarze
I just read this and my heart dropped. I used to send small amounts to my cousin in Shanghai through WeChat. Now I’m terrified I’ve put her at risk. I didn’t even know it was illegal. What do I do now?