Are Crypto Payments Allowed in China? 2025 Regulations Explained

As of 2025, crypto payments are completely illegal in mainland China. There are no exceptions, no loopholes, and no gray areas for individuals or businesses trying to accept Bitcoin, Ethereum, or any other cryptocurrency as payment. If you're running a store, an online shop, or even a freelance service in China and you try to take crypto, you're breaking the law.

How China Banned Crypto Payments

China didn’t wake up one day and ban crypto overnight. It was a slow, deliberate process that started over a decade ago. In 2013, banks were told not to process Bitcoin transactions. By 2017, all domestic crypto exchanges were shut down. Mining operations-where people use powerful computers to create new coins-were outlawed nationwide in 2021. By 2025, the People’s Bank of China (PBOC) went further: it made it illegal to even hold cryptocurrencies.

The official decree, issued on May 30, 2025, and effective June 1, 2025, didn’t just stop trading. It criminalized ownership. If you have Bitcoin in your wallet, even if you never traded it, you could face fines, asset seizures, or worse. Enforcement is handled by multiple agencies: the Cyberspace Administration, the Ministry of Industry, and local financial regulators. They’ve been using data tracking, bank monitoring, and even AI tools to spot crypto activity.

What Counts as a Crypto Payment?

A crypto payment isn’t just buying coffee with Bitcoin. It includes:

• Accepting cryptocurrency as payment for goods or services
• Using crypto to pay employees or contractors
• Transferring crypto between wallets as a form of settlement
• Using decentralized finance (DeFi) apps to send or receive crypto
• Participating in over-the-counter (OTC) trades with individuals

Even if you’re using a foreign exchange like Binance or Kraken, and you’re physically in China, you’re still breaking the law. The ban applies to anyone inside China’s borders, regardless of where the platform is based.

Why Did China Do This?

China’s government doesn’t oppose technology-it just wants total control over money. The core reasons are:

• Capital flight: Crypto could let people move money out of China without government approval, undermining strict currency controls.
• Financial stability: Crypto prices are volatile. The government fears mass losses could trigger panic or economic disruption.
• Monetary sovereignty: If people start using Bitcoin instead of the yuan, the central bank loses power over interest rates, inflation, and credit.

The answer China chose? The e-CNY-the digital yuan. It’s not decentralized. It’s not anonymous. Every transaction is tracked by the government. You can use it to pay for groceries, subway rides, or online orders. It’s already active in over 100 cities, with millions of users. Unlike crypto, the e-CNY gives the state full visibility. That’s exactly what China wants.

What About Cross-Border Payments?

Here’s where it gets interesting. While crypto payments inside China are banned, the government is actively building blockchain-based systems for international trade. The mBridge project-a joint pilot with Hong Kong, Thailand, and the UAE-uses digital versions of central bank currencies to settle cross-border payments. It’s not Bitcoin. It’s not Ethereum. It’s digital yuan, digital Hong Kong dollar, digital Thai baht-all running on a permissioned blockchain controlled by central banks.

This isn’t a contradiction. It’s strategy. China wants to replace the U.S. dollar in global trade, not replace its own currency with crypto. So while you can’t pay your landlord in Dogecoin, Chinese companies can use the e-CNY to pay suppliers in Singapore or the UAE through approved channels.

What Happens If You Get Caught?

The penalties are real. In 2024, over 1,200 people were arrested for crypto-related activities. In early 2025, a Shanghai-based tech firm was fined 5 million RMB ($700,000) for letting employees receive part of their salary in Bitcoin. Courts no longer recognize crypto as property in civil disputes-if you lose money in a crypto scam, you can’t sue to get it back.

Even using a VPN to access foreign crypto exchanges isn’t safe. The Cyberspace Administration now requires companies to report employees who access restricted financial platforms. If your employer finds out you’re trading crypto, they could be legally obligated to report you.

Can You Use Crypto Outside China?

If you’re a Chinese citizen living abroad-say, in New Zealand, Canada, or the U.S.-you’re not breaking Chinese law by using crypto. But if you’re physically in China, even as a tourist or on a business trip, the ban still applies. There’s no legal way to use crypto for payments while inside the country.

And if you’re a foreign business trying to sell to Chinese customers? Forget crypto. You can’t legally accept it. Your payment processor won’t let you. Banks won’t clear it. Even if you use a third-party gateway, it’s a high-risk operation with no legal protection.

What’s the Alternative?

The only legal digital payment option in China is the e-CNY. It works through apps like WeChat Pay and Alipay, but it’s backed by the central bank. You can scan a QR code, pay with your phone, and the transaction is settled instantly. It’s faster than credit cards, cheaper than PayPal, and fully compliant with Chinese law.

Businesses that want to serve Chinese customers must integrate with the e-CNY system. That means partnering with approved financial institutions and following strict KYC rules. No crypto. No anonymity. No volatility. Just control.

Will This Ever Change?

Some experts think China might soften its stance. In July 2025, officials in Shanghai met to discuss stablecoins and CBDCs. But no policy shift has happened. The government’s priority isn’t innovation-it’s control. The e-CNY is their answer to digital money. Why allow decentralized alternatives when you can build your own?

The future of crypto in China looks like this: total ban on domestic use, selective support for blockchain in international trade, and the e-CNY as the only legal digital currency. If you’re in China, crypto payments are not an option. They’re a legal risk.

What About Hong Kong and Macau?

Hong Kong and Macau operate under different rules. They’re not part of mainland China’s financial system. In Hong Kong, you can legally trade crypto, use licensed exchanges, and even accept Bitcoin as payment. The Securities and Futures Commission (SFC) regulates it. But if you’re in Shenzhen, just across the border, the same action is a crime.

This creates a strange reality: you can pay with crypto in Hong Kong, but not in Guangzhou. The border isn’t just physical-it’s legal.