PBOC crypto rules: What China’s central bank really bans and allows

When you hear PBOC crypto rules, the regulatory framework set by the People’s Bank of China to control cryptocurrency use within China. Also known as China’s cryptocurrency regulations, it’s not about stopping innovation—it’s about replacing it with state control. Since 2017, the PBOC has moved from vague warnings to total bans on crypto exchanges, mining, and trading platforms operating inside China. But here’s the twist: while private crypto is outlawed, the PBOC launched its own digital currency—the digital yuan—backed by the full power of the Chinese state. This isn’t a contradiction. It’s strategy.

The PBOC crypto rules don’t just block access—they reshape behavior. Banks can’t process crypto transactions. Exchanges like Binance and Huobi had to shut down their mainland operations. Even peer-to-peer trading got harder as payment apps like WeChat Pay and Alipay started flagging crypto-related payments. But outside China, these rules had ripple effects: miners moved to Kazakhstan and the U.S., traders turned to offshore platforms, and crypto projects scrambled to remove Chinese IP addresses from their websites. Meanwhile, the digital yuan, China’s sovereign central bank digital currency (CBDC) designed for domestic use and international influence. Also known as e-CNY, it enables real-time monitoring of every transaction, from grocery runs to cross-border payments. Unlike Bitcoin, the digital yuan gives the government total visibility. No anonymity. No decentralization. Just control. That’s why the PBOC treats private crypto as a threat—not because it’s risky, but because it’s untrackable.

These rules also created a legal gray zone for Chinese citizens. Many still access crypto through VPNs and offshore exchanges, but they do it quietly. If caught, they risk fines or worse. Meanwhile, Chinese firms are quietly building blockchain tools for supply chains and government records—anything that doesn’t involve decentralized tokens. The crypto trading in China, the underground and restricted activity that persists despite official bans. Also known as shadow crypto market, it’s not dead—it’s just hidden. You won’t find it on news sites, but it’s there: QR codes exchanged between friends, encrypted Telegram groups, and crypto ATMs in border towns.

What does this mean for you if you’re not in China? Everything. The PBOC’s actions forced global exchanges to comply or lose access to one of the world’s largest populations. It pushed DeFi developers to build tools that ignore geographic borders. And it proved that a major economy can ban crypto without collapsing its financial system—by replacing it with something more controllable. The PBOC crypto rules aren’t just about regulation. They’re a blueprint for how governments might handle digital money in the next decade.

Below, you’ll find real-world examples of how these rules play out: fake exchanges pretending to serve Chinese users, scams targeting those trying to bypass the ban, and projects that vanished overnight because they couldn’t adapt. This isn’t theory. It’s what happened when a central bank decided crypto had to die—so it could be reborn as something it owned.