Are domestic cryptocurrency exchanges legal?

Legal status of domestic cryptocurrency exchanges

Is cryptocurrency trading legal in the country?

Illegal. The People's Bank of China and other departments have issued multiple announcements explicitly prohibiting virtual currency transactions and providing related services.

Specific provisions

• "Announcement on Preventing Token Issuance Financing Risks" (September 2017): The issuance and trading of tokens is prohibited.
• "Notice on Further Preventing and Handling the Risks of Speculation in Virtual Currency Transactions" (May 2021): Virtual currency exchanges and over-the-counter trading platforms are prohibited from conducting business.

Penalty Measures

Individuals or institutions that violate the above regulations will face administrative penalties, including fines, revocation of business licenses, etc.

Regulatory Response

• The People’s Bank of China and other departments continue to carry out operations to crack down on virtual currency transactions.
• Close illegal exchanges and investigate and deal with illegal activities.
• Strengthen the monitoring and crackdown on overseas trading platforms.

Related Risks

• The virtual currency market is extremely unstable and there are high investment risks.
• Participating in virtual currency transactions may violate the law and face penalties.
• It is recommended that investors invest in virtual currencies with caution to avoid illegal activities and capital losses.

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