As of 2025, businesses in mainland China cannot legally accept any cryptocurrency. Holding or receiving crypto is a criminal offense under new laws designed to enforce state control via the digital yuan.
Crypto Ban China: What Happened and How It Changed Global Crypto
When Crypto Ban China, a sweeping government policy that outlawed cryptocurrency trading, mining, and financial services in 2021. Also known as China’s cryptocurrency crackdown, it wasn’t just a regulatory move—it was a seismic shift that sent shockwaves through Bitcoin markets, mining hubs, and exchanges worldwide. Before 2021, China handled over 70% of global Bitcoin mining. Miners ran massive farms in Sichuan and Inner Mongolia, powered by cheap hydropower and coal. Then, in one year, it all vanished.
The ban didn’t just target trading platforms like Huobi and OKX—it went after the entire infrastructure. Banks were ordered to cut off crypto-related accounts. Mining equipment was seized. Electricity to crypto farms was cut. Even private mining rigs at home became risky. The government called it a move to protect financial stability and reduce energy waste, but the real goal was clear: control money flows and push digital currency adoption through the Digital Yuan, China’s state-backed central bank digital currency (CBDC). Also known as e-CNY, it’s the only digital money Chinese citizens can legally use for daily transactions. While Bitcoin and Ethereum kept going elsewhere, China’s exit forced miners to relocate—mostly to the U.S., Kazakhstan, and Russia. Exchanges moved headquarters to Singapore, Dubai, and Hong Kong. And suddenly, the world realized crypto wasn’t just decentralized—it was portable.
The ban also exposed how fragile crypto markets were to political moves. When China pulled the plug, Bitcoin dropped 30% in days. But it also sparked innovation. Countries that welcomed miners saw a boom in clean energy projects. The U.S. started using stranded gas and excess solar to power mining rigs. Some miners even turned waste heat from rigs into greenhouse heating. Meanwhile, China’s own blockchain tech kept growing—but only for government-approved projects. No Bitcoin. No Ethereum. No decentralized finance. Just a tightly controlled digital currency system.
Today, China still enforces the ban. Mining is illegal. Trading is blocked. Even using overseas exchanges can land you in trouble. But the world didn’t stop. What China tried to kill, the rest of the world rebuilt—faster, smarter, and more distributed. Below, you’ll find real stories of what happened to miners, exchanges, and users caught in the crossfire. You’ll see how scams like XREATORS (ORT) thrived in the chaos, how exchanges like VAEX vanished without a trace, and why platforms like UPTX and Nivex now carry the same red flags as the ones China shut down. This isn’t history. It’s a warning—and a roadmap for how to stay safe when governments decide to turn off the lights.