Crypto Taxation in China: What You Need to Know About Crypto and Taxes in China

When it comes to crypto taxation in China, the Chinese government doesn’t treat cryptocurrency as taxable income or property—it treats it as an illegal financial activity. Also known as crypto regulation in China, this isn’t about filing forms or paying rates—it’s about avoiding detection entirely. There’s no official crypto tax code because the state doesn’t acknowledge crypto as legal money, assets, or even a financial instrument. If you’re holding Bitcoin, Ethereum, or any token in China, you’re doing it outside the system—and that means no tax breaks, no reporting, and no protection.

What happens instead? Chinese banks, state-controlled financial institutions that follow directives from the People’s Bank of China. Also known as PBoC-regulated banks, they’re programmed to freeze any transaction tied to crypto exchanges or wallet transfers. Try to withdraw crypto to fiat? Your account gets flagged, your funds locked, and you might get a visit from regulators. This isn’t rare—it’s standard. Meanwhile, cryptocurrency restrictions in China, a nationwide policy enforced since 2021 that bans exchanges, mining, and crypto-related services. Also known as China crypto ban, it applies to everyone: individuals, businesses, and even foreign platforms trying to serve Chinese users. The goal isn’t to tax crypto—it’s to erase it from the financial landscape.

You won’t find guides on how to report crypto gains in China because there’s no legal way to own it. The few people who still trade do so through peer-to-peer markets, offshore wallets, or hidden channels—all without any safety net. If you get hacked, scammed, or audited, there’s no recourse. The state won’t help you recover funds, and it won’t let you convert them legally. This isn’t a gray area—it’s a black wall. And while other countries debate tax rates and capital gains, China has already decided: crypto doesn’t exist in its financial system.

What you’ll find below aren’t tax tips or filing templates. You’ll find real stories from people who tried to cash out, bank accounts that vanished overnight, and how the system actively blocks every path back to fiat. These aren’t hypotheticals—they’re documented cases from traders, miners, and investors caught in China’s crypto crackdown. If you’re wondering what crypto taxation looks like in China, the answer is simple: there isn’t one. There’s only risk.