China crypto trading: What's allowed, what's banned, and how traders adapt

When you hear China crypto trading, the practice of buying, selling, or holding digital assets within China’s legal boundaries. Also known as cryptocurrency activity in mainland China, it’s not about exchanges like Binance or Coinbase—it’s about how people move money when banks won’t touch it. In 2021, China shut down all domestic crypto exchanges and banned financial institutions from handling crypto transactions. But that didn’t end trading. It just pushed it underground—into P2P platforms, encrypted apps, and non-custodial wallets.

People in China still trade crypto because they need to protect savings from inflation, send money abroad, or access global DeFi tools. They use non-custodial wallet, a digital wallet where you hold your own private keys without relying on a bank or exchange. Also known as self-custody crypto, it’s the only way to truly own your coins when the government blocks traditional gateways. Apps like MetaMask and Ledger are common, but users avoid anything tied to KYC. Instead, they trade via P2P crypto China, peer-to-peer platforms where buyers and sellers connect directly using local payment methods like WeChat Pay or bank transfers. Also known as over-the-counter crypto trading, it’s how most Chinese traders bypass the ban without getting caught. Platforms like LocalBitcoins and Paxful still work, but many now use Telegram groups and encrypted apps to avoid detection.

Regulators keep cracking down—freezing bank accounts, shutting down P2P operators, and fining people who advertise crypto services. But demand hasn’t dropped. Why? Because crypto isn’t just speculation—it’s a lifeline. For small businesses, it’s a way to get paid in USD. For families, it’s a hedge against currency devaluation. And for tech-savvy users, it’s access to tools they can’t get anywhere else. The ban didn’t kill crypto in China. It made it smarter, quieter, and more resilient.

What you’ll find below are real stories and deep dives into the tools, risks, and tactics people use to trade crypto in China. From how hackers exploit loopholes to how ordinary users stay safe without a bank account, these posts show the hidden reality behind the headlines. No fluff. No hype. Just what’s actually happening on the ground.