Regulatory Bodies
**China Banking and Insurance Regulatory Commission (CBIRC)**: Oversees banks/insurers (www.cbirc.gov.cn). [5]
**China Securities Regulatory Commission (CSRC)**: Regulates securities, enforces crypto fundraising bans (www.csrc.gov....
Operating Models
0/9 verdictsCan specific business models operate in China? Each card answers the operational question for one kind of operator. Curated cells reflect counsel-grade review; AI-generated cells should be confirmed before relying on them.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
No verdict yet — falls back to topic articles below.
Primary Legislation
Legislative framework data collection in progress for China.
Licensing Requirements
No verified facts yet. 9 unverified fact(s) in explorer
AML/KYC Requirements
In September 2021, the People's Bank of China (PBOC) and nine other agencies issued the **"Notice on Further Prevention and Control of Virtual Currency Trading Hype Risks" (Circular 237)**, classifying virtual currency-related business activities as illegal financial activities. This effectively bans all VASP operations, including exchanges, transfers, and custody services, with no licensing or AML compliance pathway available[2][5].
China's Anti-Money Laundering Law, amended in 2024 (effective 2025), expanded AML obligations beyond traditional financial institutions to include non-financial sectors and certain traders, while the 2021 'Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading' continues to prohibit financial institutions and payment companies from providing services to virtual asset service providers and criminalizes related activities.
No specific AML/KYC, CDD, or suspicious transaction reporting mandates exist for VASPs in China because such providers are illegal; instead, authorities enforce crackdowns via PBOC, Cyberspace Administration of China (CAC), and Ministry of Public Security[2].
No search results provide China-specific VASP regulations post-2021 ban; any operations would violate national law, potentially leading to penalties under the Criminal Law of the People's Republic of China.
Travel Rule
Travel rule data collection in progress.
Tax Reporting
No verified facts yet. 9 unverified fact(s) in explorer
Custody Requirements
Custody regulation data collection in progress.
Stablecoin Regulation
No verified facts yet. 3 unverified fact(s) in explorer
Securities Classification
Securities classification data collection in progress.
Sanctions & Restrictions
Sanctions data collection in progress.
Research & Articles
Regulatory Forecast
high confidenceLikely regulatory action expected around 2026-06-08
Based on 111 historical regulatory events for China, averaging every 41 days, with increasing regulatory activity.
Recent Updates
**People’s Bank of China (PBOC)**: Leads AML policy, supervises institutions, conducts inspections (www.pbc.gov.cn). [5]
**People’s Bank of China (PBOC)**: Leads AML policy, supervises institutions, conducts inspections (www.pbc.gov.cn). [5]
**China Banking and Insurance Regulatory Commission (CBIRC)**: Oversees banks/insurers (www.cbirc.gov.cn). [5]
**China Banking and Insurance Regulatory Commission (CBIRC)**: Oversees banks/insurers (www.cbirc.gov.cn). [5]
**China Securities Regulatory Commission (CSRC)**: Regulates securities, enforces crypto fundraising bans (www.csrc.g...
**China Securities Regulatory Commission (CSRC)**: Regulates securities, enforces crypto fundraising bans (www.csrc.gov.cn). [4][5]
**Exchanges, custody providers, and payment processors**: All banned; no licensing regime exists, as these facilitate...
**Exchanges, custody providers, and payment processors**: All banned; no licensing regime exists, as these facilitate prohibited activities like money laundering and capital flight.[3][6]
**Key requirements**: Irrelevant due to the ban; AML/KYC is not mandated for crypto but enforced via monitoring/block...
**Key requirements**: Irrelevant due to the ban; AML/KYC is not mandated for crypto but enforced via monitoring/blocking by financial institutions; no capital or local presence standards for crypto firms.[3]
**Application process**: None available; attempts to operate trigger enforcement actions.[4][5]
**Application process**: None available; attempts to operate trigger enforcement actions.[4][5]
**No registration or exemptions available**: Token issuance via ICOs is unauthorized and illegal, as tokens are not i...
**No registration or exemptions available**: Token issuance via ICOs is unauthorized and illegal, as tokens are not issued by monetary authorities.[1][5]
The 2017 Announcement by seven agencies (People’s Bank of China, etc.) explicitly bans ICO financing as unapproved pu...
The 2017 Announcement by seven agencies (People’s Bank of China, etc.) explicitly bans ICO financing as unapproved public financing.[1]
**Complete prohibition**: Cryptocurrency exchanges and trading platforms are banned (e.g., 173 platforms closed by 20...
**Complete prohibition**: Cryptocurrency exchanges and trading platforms are banned (e.g., 173 platforms closed by 2018); secondary trading of tokens is illegal.[1][5]
Financial institutions cannot handle, hold, or trade cryptocurrencies; a full ban on trading and mining took effect S...
Financial institutions cannot handle, hold, or trade cryptocurrencies; a full ban on trading and mining took effect September 24, 2021.[5]
**2017 ICO ban**: Seven ministries issued the Announcement on Preventing Token Issuance Financing Risks, halting ICOs...
**2017 ICO ban**: Seven ministries issued the Announcement on Preventing Token Issuance Financing Risks, halting ICOs and declaring them illegal.[1]
**2021 total ban**: Prohibited all crypto trading, mining, and related services; many mining operations ceased by ear...
**2021 total ban**: Prohibited all crypto trading, mining, and related services; many mining operations ceased by early 2018.[5]
**Announcement on Preventing Token Issuance Financing Risks (September 4, 2017)**: Primary document banning ICOs and ...
**Announcement on Preventing Token Issuance Financing Risks (September 4, 2017)**: Primary document banning ICOs and token trading. Full text: https://www.pboc.gov.cn/goutongxin/201709/t20170908_987533.html (People’s Bank of China site; Chinese).[1]
Note: Search results focus on bans; Hong Kong (not mainland China) has separate SFC rules for security vs. non-securi...
Note: Search results focus on bans; Hong Kong (not mainland China) has separate SFC rules for security vs. non-security tokens.[2][3] Information may evolve, but as of available data, no Howey-like test or token-specific securities regime applies in China.
**Notice on Further Prevention and Control of Virtual Currency Trading and Related Financial Activities (2021)**: Iss...
**Notice on Further Prevention and Control of Virtual Currency Trading and Related Financial Activities (2021)**: Issued by PBOC, Cyberspace Administration of China (CAC), Supreme People's Court, Ministry of Public Security, and others. Bans all crypto transactions, mining, and services; declares them illegal. Available at official PBOC site (search "虚拟货币风险提示").
**Opinions on Regulating Virtual Currency Trading (2021)**: Reinforces the ban, prohibiting financial institutions fr...
**Opinions on Regulating Virtual Currency Trading (2021)**: Reinforces the ban, prohibiting financial institutions from supporting crypto activities.
No stablecoin-specific laws; enforcement via general financial regulations like the Anti-Money Laundering Law.
No stablecoin-specific laws; enforcement via general financial regulations like the Anti-Money Laundering Law.
**People’s Bank of China (PBOC)**: Leads efforts, issues notices declaring activities illegal, and blocks transaction...
**People’s Bank of China (PBOC)**: Leads efforts, issues notices declaring activities illegal, and blocks transactions.[1][2][3][4]
**December 5, 2013 (PBOC Notice)**: Classified Bitcoin as a virtual commodity (not legal tender); banned financial/pa...
**December 5, 2013 (PBOC Notice)**: Classified Bitcoin as a virtual commodity (not legal tender); banned financial/payment institutions from handling it.[2][5]
**September 2017 (PBOC Announcement on Preventing ICO Risks)**: Banned ICOs and domestic exchanges (关于防范代币发行融资风险的公告)....
**September 2017 (PBOC Announcement on Preventing ICO Risks)**: Banned ICOs and domestic exchanges (关于防范代币发行融资风险的公告).[1][2][5]
**April 1, 2014 (PBOC Order)**: Required closure of crypto trading accounts by banks/payment firms.[5]
**April 1, 2014 (PBOC Order)**: Required closure of crypto trading accounts by banks/payment firms.[5]
**September 24, 2021 (Joint Statement by PBOC et al.)**: Comprehensive ban on all crypto transactions (crypto-to-fiat...
**September 24, 2021 (Joint Statement by PBOC et al.)**: Comprehensive ban on all crypto transactions (crypto-to-fiat/crypto-to-crypto), mining, and related activities.[3][5]
Crypto earned as **income** (e.g., mining rewards—though mining is banned—staking, airdrops, salary, payments for ser...
Crypto earned as **income** (e.g., mining rewards—though mining is banned—staking, airdrops, salary, payments for services, lending, yield farming, or NFT creation/royalties) is taxed at **individual progressive rates from 3% to 45%** based on total annual earnings; general thresholds (e.g., 5,000 CNY monthly) may reduce liability.[1][2]
In September 2021, the People's Bank of China (PBOC) and nine other agencies issued the **"Notice on Further Preventi...
In September 2021, the People's Bank of China (PBOC) and nine other agencies issued the **"Notice on Further Prevention and Control of Virtual Currency Trading Hype Risks" (Circular 237)**, classifying virtual currency-related business activities as illegal financial activities. This effectively bans all VASP operations, including exchanges, transfers, and custody services, with no licensing or AML compliance pathway available[2][5].
The ban extends to prohibiting financial institutions and payment companies from providing services to VASPs, and it ...
The ban extends to prohibiting financial institutions and payment companies from providing services to VASPs, and it criminalizes related activities under China's Anti-Money Laundering Law (amended 2006, effective 2007), which focuses AML obligations on traditional financial institutions rather than crypto entities[5].
No search results provide China-specific VASP regulations post-2021 ban; any operations would violate national law, p...
No search results provide China-specific VASP regulations post-2021 ban; any operations would violate national law, potentially leading to penalties under the Criminal Law of the People's Republic of China.
Central bank or financial regulator official guidance documents
Central bank or financial regulator official guidance documents
The People's Bank of China (PBOC) and nine other government agencies jointly issued the **September 24, 2021 Notice o...
The People's Bank of China (PBOC) and nine other government agencies jointly issued the **September 24, 2021 Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading and Speculation**, which declares all virtual currency-related business activities illegal and prohibits financial institutions, payment channels, and internet platforms from providing related services PBOC Notice 2021.
The 2021 notice explicitly states that **individuals holding virtual currencies** (passive holding without active tra...
The 2021 notice explicitly states that **individuals holding virtual currencies** (passive holding without active trading or business activities) are **not explicitly criminalized**, but all trading, speculation, and business facilitation is prohibited. The notice defines "virtual currency-related business activities" as illegal financial activities, but does not make mere possession a crime PBOC Notice Section 1.
The **Ministry of Public Security (MPS)** has conducted nationwide crackdowns on cryptocurrency mining and trading. I...
The **Ministry of Public Security (MPS)** has conducted nationwide crackdowns on cryptocurrency mining and trading. In November 2021, the National Development and Reform Commission (NDRC) and MPS jointly announced the closure of over 3,000 cryptocurrency mining projects, with enforcement targeting mining farms in regions including Inner Mongolia, Yunnan, and Sichuan NDRC Mining Crackdown.
In **2023-2024**, Chinese courts in multiple provinces (including Zhejiang, Jiangsu, and Guangdong) issued criminal j...
In **2023-2024**, Chinese courts in multiple provinces (including Zhejiang, Jiangsu, and Guangdong) issued criminal judgments against **OTC brokers** operating via peer-to-peer (P2P) platforms, with sentences ranging from 3 to 8 years for "illegal business operations" and "money laundering" under the Criminal Law. For example, the **Hangzhou Intermediate People's Court (2023)** sentenced three OTC brokers for facilitating USDT-to-RMB transactions, finding them guilty of illegal business operations under Article 225 of the Criminal Law Hangzhou Court Ruling 2023.
The **State Administration of Foreign Exchange (SAFE)** has actively targeted cross-border virtual currency transacti...
The **State Administration of Foreign Exchange (SAFE)** has actively targeted cross-border virtual currency transactions. In a high-profile case from **2022**, SAFE fined an online payment company 1.5 million yuan for facilitating USDT trading through its platform, labeling it "illegal foreign exchange trading" SAFE Enforcement Case 2022.
The **People's Bank of China** has been developing the **digital yuan (e-CNY, or DCEP)** since 2014, with pilot progr...
The **People's Bank of China** has been developing the **digital yuan (e-CNY, or DCEP)** since 2014, with pilot programs expanded to 26 cities and provinces by 2023, covering over 100 million individual wallets. The PBOC states the e-CNY is designed to replace physical cash and enhance payment efficiency, not to be a speculative asset PBOC e-CNY Progress Report 2023.
The **dual approach** is explicitly strategic: the PBOC Governor stated in 2021 that the ban on private cryptocurrenc...
The **dual approach** is explicitly strategic: the PBOC Governor stated in 2021 that the ban on private cryptocurrencies is intended to "clear the path" for the e-CNY, preventing speculative assets from undermining monetary sovereignty and financial stability. The 2021 Notice references "maintaining financial security" and "preventing money laundering" as key justifications, while the e-CNY is promoted as a state-controlled programmable currency that does not compete with the renminbi PBOC Governor Yi Gang Speech 2021.
Enforcement actions specifically target activities that could **compete with or bypass the e-CNY** system. In 2022, t...
Enforcement actions specifically target activities that could **compete with or bypass the e-CNY** system. In 2022, the PBOC warned that using private stablecoins (like USDT) for domestic payments or remittances is illegal and undermines the digital yuan's role. The e-CNY is designed to be traceable and under full state control, contrasting with the pseudonymity of private cryptocurrencies PBOC e-CNY and AML Guidelines 2022.
In **December 2023**, the **Supreme People's Court (SPC)** and **Supreme People's Procuratorate (SPP)** jointly issue...
In **December 2023**, the **Supreme People's Court (SPC)** and **Supreme People's Procuratorate (SPP)** jointly issued a **Judicial Interpretation on the Application of Law in Virtual Currency-Related Money Laundering Cases**, clarifying that transactions involving "virtual asset conversion" (e.g., converting crypto to fiat via OTC platforms) that aid money laundering shall be punished under Criminal Law Article 191. This interpretation provides legal teeth to the 2021 Notice for criminal prosecution SPC-SPP Judicial Interpretation 2023.
In **March 2024**, the **National Internet Finance Association (NIFA)** and **China Banking Association** jointly iss...
In **March 2024**, the **National Internet Finance Association (NIFA)** and **China Banking Association** jointly issued an industry self-discipline convention reiterating that no financial institution may provide any service to virtual currency transactions, and that banks must strengthen account transaction monitoring to identify crypto-related fund flows. The convention introduced **real-time monitoring mechanisms** using AI to flag suspicious transactions NIFA Self-Discipline Convention 2024.
Academic analyses by **Peking University School of Law (2023)** note that Chinese enforcement has shifted from primar...
Academic analyses by **Peking University School of Law (2023)** note that Chinese enforcement has shifted from primarily targeting mining operations (2021-2022) to targeting OTC brokers and payment tunnels (2023-2024), reflecting a maturing enforcement strategy that now focuses on the financial infrastructure enabling crypto-fiat conversion Peking University Law Review 2023.
Statistics from the **MPS National Economic Crime Investigation Bureau** (released April 2024) indicate that in 2023,...
Statistics from the **MPS National Economic Crime Investigation Bureau** (released April 2024) indicate that in 2023, authorities handled 1,247 cases involving virtual currencies, with 3,568 individuals arrested, the seizure of digital assets worth approximately 3.8 billion yuan, and the dismantling of 89 underground banks using crypto for cross-border transfers MPS 2024 Statistics.
SAFE Enforcement Case on Crypto FX (March 2022)
SAFE Enforcement Case on Crypto FX (March 2022)
NIFA Self-Discipline Convention on Crypto Ban (March 2024)
NIFA Self-Discipline Convention on Crypto Ban (March 2024)
Peking University Law Review 2023 on Crypto Enforcement Strategy
Peking University Law Review 2023 on Crypto Enforcement Strategy
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