Despite China's 2021 crypto ban, peer-to-peer trading continues through VPNs, USDT, and encrypted apps. Learn how traders avoid detection, the risks involved, and why it's still thriving in 2025.
P2P Crypto China: How Peer-to-Peer Trading Works Despite the Ban
When you hear P2P crypto China, peer-to-peer cryptocurrency trading that happens directly between individuals without an exchange intermediary. Also known as person-to-person crypto trading, it’s the quiet backbone of China’s underground crypto economy. Even though China banned all major crypto exchanges in 2017 and tightened internet controls by 2025, people still buy and sell Bitcoin, Ethereum, and other coins—just not on platforms like Binance or Coinbase. They use apps like LocalBitcoins, Paxful, and domestic P2P platforms that fly under the radar, connecting buyers and sellers through WeChat, QQ, or encrypted messaging.
This isn’t just about avoiding the ban—it’s about survival. With inflation concerns and capital controls limiting how much money can leave the country, crypto became a way to preserve value. Many Chinese users trade USDT (Tether) for yuan through P2P, using bank transfers or Alipay. The system works because it’s decentralized: one person sends crypto, another sends cash. No exchange holds the funds. But this also means no protection. If someone disappears after you send money, there’s no customer service, no chargeback, no legal recourse. And the government watches. In 2024, authorities cracked down on P2P traders using AI to scan WeChat groups for keywords like "BTC" or "USDT," leading to fines and even arrests.
What’s surprising is how common this is. Reports from blockchain analysts suggest over 2 million Chinese users still trade crypto daily via P2P, mostly in second-tier cities where banking access is limited. The most traded coins? USDT, BTC, and ETH—stablecoins because they’re easier to move and less volatile. The biggest risk isn’t the tech—it’s the people. Scammers pose as buyers, use fake payment screenshots, or pressure sellers into rushing transactions. And while some use multi-signature wallets or escrow services, most don’t. They trust a stranger with a good rating on a forum.
So if you’re wondering how crypto still moves in China, the answer isn’t hidden in some advanced blockchain hack. It’s in a phone call, a screenshot, and a handshake—digital, but deeply human. The posts below dive into exactly how this works: the platforms people use, the scams to avoid, the legal gray zones, and the real stories of those who keep trading—even when the rules say they shouldn’t. You’ll find reviews of the tools that survive the ban, breakdowns of payment methods that work, and warnings about the traps that catch even smart users.