China crypto ban: What it means, how people still trade, and what's really happening

When China crypto ban, a sweeping 2021 policy that outlawed cryptocurrency trading, mining, and financial services related to digital assets. Also known as China's crypto crackdown, it was meant to protect financial stability and control capital flight. But instead of killing crypto, it pushed it underground. The ban didn’t just target exchanges—it shut down mining farms, blocked domestic payment processors from handling crypto, and forced platforms like Binance and Huobi to exit the mainland. Yet, the demand didn’t disappear. Millions of Chinese citizens still trade Bitcoin, Ethereum, and memecoins every day.

How? They use offshore crypto exchanges, platforms like Bybit, Binance (outside China), and OKX that operate from outside China’s borders. Also known as overseas crypto platforms, they’re accessed via VPNs, peer-to-peer (P2P) trading, and stablecoins like USDT that bypass traditional banking. These aren’t loopholes—they’re workarounds built into the system by users who refuse to give up control over their money. Meanwhile, crypto regulation China, the legal framework that enforces the ban and monitors financial institutions. Also known as China’s digital currency policy, it’s closely tied to the People’s Bank of China’s push for the digital yuan, which is state-controlled, unlike decentralized crypto. The government wants digital money, just not the kind you can’t track or control.

What’s surprising is how much this ban shaped global crypto. China’s mining crackdown sent hash power to Kazakhstan, the U.S., and even Paraguay. The ban also made Chinese traders some of the most sophisticated in the world—they use complex P2P networks, know how to spot fake exchanges, and avoid scams better than most. And while the official line says crypto is illegal, the reality is more gray. You won’t see police knocking on doors over a few Bitcoin, but banks will freeze accounts if they detect trading activity. That’s why most users stay quiet, use cash-based P2P deals, and avoid leaving digital trails.

The posts below cover exactly this: how Chinese traders bypass the ban, which platforms still work in 2025, what risks they face, and how the underground market keeps growing. You’ll find deep dives on Binance’s role in China, why USDT is the real currency of the underground, and how scams target those trying to trade legally. This isn’t theory—it’s what’s happening right now, in real time, behind firewalls and encrypted chats.