Accept Cryptocurrency in China: What’s Legal, What’s Not, and Who’s Doing It

When it comes to accept cryptocurrency in China, the Chinese government has made it clear that digital currencies like Bitcoin are not legal tender and cannot be used for payments. Also known as crypto payments in China, this restriction applies to all businesses, retailers, and service providers operating under Chinese law. Unlike countries that welcome Bitcoin as payment, China shut down crypto exchanges in 2021 and banned financial institutions from handling any digital asset transactions. The goal? To protect the dominance of the digital yuan, China’s state-controlled central bank digital currency (CBDC). This isn’t just a policy—it’s infrastructure. The digital yuan is built into apps like WeChat Pay and Alipay, and the government tracks every transaction.

So if crypto isn’t legal, why do some people still talk about businesses accepting it? The truth is, a few small, unofficial operations slip through. A café in Shenzhen might quietly accept Bitcoin via a third-party processor, but they’re taking a risk. If caught, they could face fines, account freezes, or worse. These aren’t mainstream businesses—they’re outliers. Even crypto-friendly platforms like Binance and OKX were forced to exit the mainland market. What’s more, mining was outlawed in 2021, and thousands of hardware rigs were shut down overnight. The state doesn’t just regulate crypto—it removes it.

But here’s the twist: the rules don’t apply the same way to foreign companies or individuals outside China’s jurisdiction. A U.S.-based SaaS company can invoice a Chinese client in Bitcoin, and the client can pay using a wallet they control overseas. That’s not illegal under Chinese law—it’s just not enforceable. The same goes for crypto-based remittances sent from abroad. The government can’t stop people from using wallets, only from operating exchanges or payment gateways inside the country. Meanwhile, the digital yuan, a tool designed to replace cash and control financial flows is rolling out in cities like Beijing and Shanghai with real-world use cases: public transit, utilities, even government salaries.

If you’re thinking about accepting cryptocurrency in China, the answer is simple: don’t. Not if you want to stay compliant. The risks far outweigh any short-term gains. But if you’re just curious about how crypto fits into China’s economic strategy, you’ll find plenty of real-world examples in the posts below—from failed crypto exchanges that vanished overnight to how businesses are quietly adapting to the digital yuan. These aren’t theoretical stories. They’re case studies of what happens when a nation decides crypto doesn’t belong in its financial system.