Crypto Exchanges to Avoid if You Are Chinese in 2025

If you're a Chinese resident, there is no such thing as a "safe" crypto exchange. Not one. Not even the ones you think you can use. As of June 1, 2025, the People’s Bank of China made it illegal for any Chinese citizen to trade, own, or even access cryptocurrency through any platform-domestic or overseas. This isn’t a warning. It’s the law. And the penalties aren’t fines. They’re asset seizures, criminal investigations, and bank account freezes.

Why Every Exchange Is Off-Limits

It doesn’t matter if the exchange is based in the U.S., Singapore, or the Cayman Islands. If it lets you log in with a Chinese phone number, accepts Chinese ID, or even allows a Chinese IP address, it’s violating Chinese law. The government doesn’t just ban exchanges-it bans the act of using them. That includes Binance, Coinbase, Kraken, OKX, KuCoin, Gate.io, and even decentralized platforms like Uniswap if you’re accessing them from within China.

The ban isn’t just about trading. It covers mining, staking, lending, OTC deals, and peer-to-peer transfers. Even holding Bitcoin in a wallet registered under your Chinese name is considered illegal. Financial institutions are legally required to scan every transaction for signs of crypto activity. If your Alipay or WeChat Pay account sends money to a known crypto OTC dealer, your account gets flagged. No warning. No second chance.

What Happens If You Try Anyway?

People still try. They use VPNs. They buy crypto through friends abroad. They use fake IDs. But the enforcement system is built to catch them.

Chinese authorities have a nationwide digital monitoring network that tracks online behavior linked to crypto. If you visit a crypto exchange website-even once-your device’s IP and browsing history get logged. Financial institutions cross-check those logs with transaction data. If there’s a match, the Ministry of Public Security gets involved.

In 2024, over 1,200 individuals in Guangdong and Zhejiang provinces were prosecuted for crypto-related violations. Some lost their homes. Others had their savings frozen for over a year while investigations dragged on. One man in Shanghai was fined 2.3 million RMB ($320,000 USD) after buying $180,000 worth of Ethereum through an OTC dealer. His bank account was permanently closed.

There’s no gray area. No legal loophole. No "small amount" exception. The law doesn’t care if you bought $50 of Bitcoin for fun. It still counts as a violation.

Why China Banned Crypto-And Why It Won’t Change

China didn’t ban crypto because it’s dangerous. It banned it because it’s uncontrollable.

The government’s goal isn’t to stop innovation. It’s to own the digital money system. That’s why they created the digital yuan-the official Central Bank Digital Currency (CBDC). Unlike Bitcoin or Ethereum, the digital yuan is fully trackable. Every transaction is recorded. Every user is identified. Every flow of money is monitored.

The digital yuan isn’t an alternative to crypto. It’s the replacement. The government wants to eliminate private digital currencies so they can control inflation, track tax evasion, and prevent capital flight. Crypto’s anonymity and decentralization directly threaten that control.

Other countries regulate crypto. China shuts it down. The U.S. has licensed exchanges. The EU has MiCA rules. Japan allows regulated platforms. But China? No exceptions. No licenses. No compromises.

This isn’t a temporary crackdown. It’s the end of a 16-year strategy. From 2009’s first ban on using Bitcoin to buy goods, to the 2017 exchange shutdowns, the 2021 mining ban, and now the 2025 total prohibition-China has been methodically closing every door.

Exchanges You Must Not Use (Even If They Say You Can)

Here’s the reality: if you’re in China, you shouldn’t even open the app.

• Binance - Once the most popular exchange for Chinese users. Now blocked at the network level. Even its mobile app was removed from Chinese app stores in 2023. Any account linked to a Chinese ID is frozen.
• Coinbase - Doesn’t allow Chinese residents to register. But some try using foreign passports. If caught, they risk criminal charges for fraud and circumventing capital controls.
• Kraken - Has KYC checks that flag Chinese addresses. Even using a foreign bank account doesn’t protect you if your identity is tied to China.
• OKX - Originally founded in China. Now officially banned. Its Chinese team was dissolved in 2021. Any user with a Chinese phone number is blocked.
• KuCoin - Still accessible via VPN, but actively targeted by Chinese regulators. In 2024, over 300 KuCoin-linked bank accounts were frozen in Beijing alone.
• Gate.io - Popular among Chinese traders. Now under active investigation. Its Chinese customer support team was shut down in early 2025.
• DeFi platforms (Uniswap, Aave, etc.) - Even if you think you’re "not using an exchange," accessing DeFi protocols from China is still illegal. The law covers all crypto transactions, regardless of platform type.

What You Can Legally Use Instead

There’s only one legal digital currency in China: the digital yuan.

It’s not Bitcoin. It’s not Ethereum. It’s not even a cryptocurrency. It’s a government-issued digital version of the renminbi. You can download the official digital yuan app through your bank. You can pay for groceries, taxis, and utilities with it. You can even send it to family members instantly.

The catch? There’s no anonymity. The government sees every transaction. There’s no decentralization. No mining. No price volatility. And no chance of profit.

If you want to invest, your legal options are limited to:

• Stocks traded on the Shanghai or Shenzhen exchanges
• Government bonds
• Bank wealth management products
• Alipay and WeChat Pay-linked financial services

These are safe. They’re regulated. And they won’t get you arrested.

What If You Move Abroad?

If you relocate permanently to another country-say, Canada, Australia, or Singapore-you can legally use crypto exchanges there. But you still need to be careful.

Chinese law applies to citizens abroad if they’re still registered as residents in China. If you haven’t officially changed your household registration (hukou), you’re still considered a Chinese citizen under the law. And if your bank account in China is still active, any crypto transaction-even from overseas-can trigger a domestic investigation.

To fully escape the ban, you need to:

1. Obtain legal residency or citizenship in another country
2. Closed all Chinese bank accounts
3. Remove your Chinese ID from all crypto platforms
4. Stop using any Chinese phone number or address for verification

Most people don’t do this. And for good reason. It’s expensive, complicated, and often requires giving up family ties or property in China.

The Bottom Line

There is no "best" crypto exchange for Chinese residents. There’s only one rule: don’t use any of them.

Trying to bypass the ban isn’t a technical problem. It’s a legal risk with real consequences. Your money can disappear. Your accounts can be frozen. Your freedom can be threatened.

The digital yuan isn’t exciting. It doesn’t promise riches. But it’s legal. And in China right now, legality is the only thing that keeps you safe.

If you want crypto, you have to leave. Otherwise, you’re playing with fire-and the Chinese government holds the match.