China cryptocurrency restrictions: What's banned, what's allowed, and how it shapes global crypto

China cryptocurrency restrictions, a sweeping government policy that bans financial institutions from processing crypto transactions and shuts down domestic mining operations. Also known as China's crypto crackdown, it began in 2021 and remains the strictest national stance on digital assets in the world. Unlike countries that regulate crypto to protect users, China moved to eliminate it entirely from its financial system—except for one exception: the digital yuan.

The digital yuan, a state-controlled central bank digital currency (CBDC) issued by the People's Bank of China. Also known as e-CNY, it allows the government to track every transaction in real time is the only crypto-like system legally permitted. While Bitcoin and Ethereum are blocked, the digital yuan is being rolled out across cities, integrated into mobile payments, and tested in cross-border trade. This isn’t just a payment tool—it’s a surveillance and control mechanism. Meanwhile, Bitcoin mining China, once the global hub for crypto mining, responsible for over 70% of Bitcoin’s hash rate. Also known as Chinese mining farms, it was outlawed in 2021 after energy shortages and financial risks alarmed regulators. Thousands of mining rigs were seized, power to data centers was cut, and miners fled to Kazakhstan, the U.S., and other countries. But the ban didn’t stop all mining—some still operate underground, using hidden power sources or offshore rigs tied to Chinese companies.

The crypto ban China, a total prohibition on exchanges, trading platforms, and peer-to-peer services within mainland borders. Also known as China’s crypto blackout, it forces users to rely on offshore platforms and VPNs to access crypto pushed millions into gray-market workarounds. Some use DAI or USDT to send money abroad, others trade via Telegram groups or P2P apps. But the risk is high: accounts get frozen, wallets are seized, and fines can reach millions of yuan. The government doesn’t just want to stop speculation—it wants to control the flow of capital entirely. That’s why the crypto regulations China, a zero-tolerance policy enforced through banking restrictions, ISP monitoring, and AI-powered transaction tracking. Also known as China’s financial firewall, it’s designed to prevent capital flight and maintain the yuan’s dominance is so aggressive.

What you’ll find in the posts below isn’t just news about China’s rules—it’s the real-world fallout. From how Iranians use similar tactics to bypass bans, to how Russia sidesteps sanctions with crypto, to how miners in Iran still operate under tight controls. These aren’t isolated cases—they’re reactions to the same global pressure China started. You’ll see how blockchain security tools like Merkle trees and formal verification help traders verify transactions without trusting centralized exchanges. You’ll learn why 12-word seed phrases still matter when your wallet is your only lifeline. And you’ll find out why the digital yuan is the real winner in this game—not Bitcoin, not Ethereum, but a currency the state can turn off with a click.