Crypto Risks in China: What You Need to Know About Bans, Wallets, and Scams

When it comes to crypto risks in China, the combination of government bans, financial isolation, and targeted scams that trap unsuspecting users. Also known as crypto censorship in China, it’s not just about legality—it’s about survival in a system that blocks banks, shuts down exchanges, and ignores your rights. If you’re in China or have assets tied to the region, you’re not just dealing with market swings—you’re navigating a landscape where holding crypto means taking full responsibility for your own safety.

The Chinese government banned cryptocurrency trading and mining back in 2021, but that didn’t stop people from using crypto. Instead, it pushed users toward non-custodial wallets, digital wallets where you control your private keys and no bank or exchange can freeze your funds. This is the only way to keep your crypto safe when banks refuse to touch it, as seen in self-custody crypto setups using MetaMask or Ledger. Without these, you’re at the mercy of platforms that could vanish overnight—like Piyasa or AfroDex, which were never real to begin with. Meanwhile, OFAC sanctions, U.S. measures targeting crypto theft linked to state-backed hackers, have made it harder for anyone in restricted regions to interact with global networks. North Korean groups stole billions using fake jobs and crypto laundering, and now even innocent users get caught in the crossfire when exchanges block entire countries. These sanctions don’t just hit criminals—they hit ordinary people trying to send money or trade P2P.

Scams thrive in this vacuum. With no legal recourse, fake airdrops like DSG or HAI token claims lure people into paying fees just to "claim" tokens that don’t exist. Platforms like MakiSwap and CRODEX disappeared because they had no users, no audits, and no real value. In China, where access to trusted exchanges like Binance is limited, people turn to shady alternatives—and lose everything. The real danger isn’t the ban itself. It’s the illusion that someone else will protect you.

What you’ll find below are real stories from people who’ve been burned—exchanges that vanished, airdrops that stole money, and wallets that saved lives. These aren’t theoretical risks. They’re daily realities for anyone trying to use crypto in restricted areas. Whether you’re in China, Colombia, or anywhere else where banks say no, the lessons here are the same: own your keys, avoid hype, and never trust a platform that won’t show you its bones.