China Crypto Restrictions: What You Need to Know

When talking about China crypto restrictions, the set of rules the Chinese government imposes on digital assets, trading platforms, and related services. Also known as crypto crackdown in China, these measures shape everything from local exchanges to cross‑border crypto flows. The central goal is to control capital outflows and maintain financial stability, which means the state constantly updates policies to close loopholes.

Key Areas Affected by the Crackdown

The first major pillar is crypto exchange bans, rules that forbid domestic platforms from offering spot or derivative trading of cryptocurrencies. Since 2021 the People’s Bank of China (PBOC) has ordered the shutdown of all on‑shore exchanges, forcing users to move to peer‑to‑peer methods or offshore services. This ban directly influences how investors access Bitcoin, Ethereum and other tokens, and it drives a surge in VPN usage and offshore exchange registrations. Next up is the DeFi crackdown, the tightening of regulations around decentralized finance protocols that operate without a central authority. The government treats DeFi as a high‑risk activity because it bypasses traditional KYC and AML checks. Recent notices require DeFi platforms to register with the Ministry of Finance and to provide real‑name verification for all participants. This requirement creates friction for yield farming and liquidity mining, pushing many projects to relocate their smart contracts to more crypto‑friendly jurisdictions. Finally, the Bitcoin mining ban, the 2021 order that shut down large‑scale mining farms in Inner Mongolia and other regions due to energy concerns illustrates how energy policy intertwines with crypto regulation. The ban forced miners to either switch to renewable‑powered sites in Sichuan or move operations overseas. The resulting hash‑rate drop showed a clear link between state energy controls and global Bitcoin security. All three pillars—exchange bans, DeFi restrictions, and mining shutdowns—are coordinated by the PBOC regulations, the central bank’s guidelines that enforce capital controls, anti‑money‑laundering standards, and financial stability measures. The PBOC’s role is to ensure that crypto activity does not undermine the yuan’s stability or facilitate illicit flows. In practice, this means any new crypto service must align with strict reporting, real‑name verification, and energy‑efficiency standards before it can operate in China. Understanding these interconnected rules helps you see why many Chinese traders now prefer offshore platforms, why DeFi projects are migrating, and how the mining landscape has reshaped. Below you’ll find a curated set of articles that break down each piece—exchange selection guides, compliance checklists, and deep dives into how the crackdown reshapes the global crypto ecosystem.