Crypto Ownership in China: Rules, Risks, and What You Can't Do

When it comes to crypto ownership in China, the Chinese government strictly prohibits private cryptocurrency transactions while promoting its own state-backed digital currency. Also known as China's crypto ban, this policy isn't about slowing innovation—it's about controlling money flow, preventing capital flight, and keeping financial power centralized. Unlike countries that try to regulate crypto with taxes or exchanges, China outright banned it for citizens. You can't buy Bitcoin on a local app. You can't use Ethereum to pay for goods. Even holding crypto in a personal wallet is legally risky.

This isn't just about Bitcoin. It's about control. The digital yuan, China's central bank digital currency (CBDC). Also known as e-CNY, it's the only digital money the state allows you to use legally. It tracks every transaction, ties to your real identity, and can be turned off by authorities. Meanwhile, private blockchains like Ethereum or Solana are blocked at the network level. Even mining was outlawed in 2021—thousands of machines were shut down overnight. The message was clear: money belongs to the state, not the user.

But here's the twist: China still leads in blockchain tech. It's building private, permissioned blockchains for supply chains, land records, and government services. These aren't open networks. They're tightly controlled systems where only approved parties can write data. So while you can't own crypto in China, the government is quietly using blockchain to make its own systems faster and more efficient. It’s not anti-tech—it’s anti-decentralization.

For global users, this matters. China’s rules shaped how exchanges like Binance and OKX operate—many moved their user base offshore. It also pushed Chinese crypto traders into offshore platforms, peer-to-peer markets, and hidden wallets. But even then, the risk is high. In 2023, police raided homes over crypto holdings. Wallets were seized. People were fined. The state doesn’t just block access—it enforces compliance.

What you’ll find in the posts below isn’t a list of how to bypass China’s ban. It’s a collection of real cases: how other countries regulate crypto, how scams target people trying to trade in restricted zones, and why platforms like Coinbase block users in certain regions. You’ll see how North Korea exploits crypto loopholes, how Brazil limits forex access, and how Myanmar’s fraud networks mirror the same control issues China fears. These aren’t random stories—they’re all connected to the same global tension: who owns money, and who gets to decide?