China -- Licensing Requirements Regulatory Overview

China (Mainland) maintains a comprehensive ban on cryptocurrency and virtual asset-related financial activities, prohibiting exchanges, custody, payment processing, ICOs, mining, and related services—no licenses or registrations are available or required, as these are deemed illegal.[3][4][5][6][7]

This prohibition stems from key regulations including the 2017 Announcement on Risks of ICOs (banning ICOs and exchange operations), the 2021 Circular 237 (expanding the ban to all crypto-related business activities like trading, derivatives, and services by financial/payment institutions), and ongoing enforcement by the People's Bank of China (PBOC), China Securities Regulatory Commission (CSRC), and State Administration of Foreign Exchange (SAFE).[3][4][6] Cryptocurrencies are classified as virtual commodities, not legal tender, and institutions cannot provide trading, settlement, account opening, or custody services; overseas platforms are barred from serving Chinese residents, with internet firms required to block and report crypto content.[3][5]

• 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]
• Registration vs. licensing: Neither applies—operations are illegal under a prohibition regime, not a registration or licensing framework.[3][5][6]
• 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]

Note: Search results referencing licensing (e.g., for security tokens) apply to Hong Kong under the Securities and Futures Ordinance (SFO) by the SFC, a separate jurisdiction with a voluntary regime for platforms trading at least one security token, including AML/KYC, capital requirements, and local presence—but not mainland China.[1][2] NFTs face separate rules (filing required under 2019 Blockchain Regulations, no crypto settlement allowed).[6] As of 2025-2026, no policy shift has legalized these activities in mainland China.[3][7]