Can Bitcoin be traded in China?

In China, Bitcoin trading is currently unregulated and banned, including bank accounts and ICO transactions. The bans were prompted by the PBOC's belief that Bitcoin poses financial stability, consumer protection and money laundering risks. Despite the ban, Bitcoin is still traded in China through over-the-counter trading platforms, but these platforms are unregulated and carry risks of fraud and market manipulation. Therefore, trading Bitcoin in China is illegal and you may face legal consequences.

Can Bitcoin be traded in China?

Currently in China, Bitcoin trading is unregulated and banned.

In 2017, the People’s Bank of China (PBOC) issued a notice prohibiting financial institutions from participating in Bitcoin transactions. The notice prohibits banks from opening accounts for Bitcoin transactions or providing legal basis for settlement of funds. Additionally, the notice also prohibits initial coin offerings (ICOs) of virtual currencies.

PBOC believes that Bitcoin has the following risks:

• Financial stability risk: High volatility of Bitcoin The sexual and speculative nature may disrupt financial markets.
• Consumer Protection Risk: Investors may suffer losses in the absence of supervision.
• Money Laundering Risk: The anonymity of Bitcoin may make it a tool for money laundering.

Despite these bans, Bitcoin is still traded in China through over-the-counter (OTC) platforms. However, these platforms are unregulated, exposing traders to risks of fraud and market manipulation.

Therefore, trading Bitcoin in China is illegal and you may face legal consequences. Individuals wishing to engage in Bitcoin transactions should be aware of these risks and exercise caution.

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