China

China has banned cryptocurrency trading, mining, and speculation activities as per the Joint Notice on Further Preventing and Dealing with Risks of Virtual Currency Trading and Speculation (September 2021). The People's Bank of China enforces strict prohibitions on crypto activities.

Overview

StatusBanned
Risk Score85/100 (Very High Risk)
Regionasia pacific
CurrencyCNY

Tax Information

Capital Gains (Personal)N/A - crypto trading banned since September 2021
Capital Gains (Corporate)N/A - all crypto business activities prohibited
VAT on CryptoNo
Staking TaxN/A
Airdrop TaxN/A

No crypto-specific tax guidance available.

Licensing & Registration

RequiredNo
RegulatorPBOC / CSRC / CBIRC
FrameworkJoint Notice on Further Preventing and Dealing with Risks of Virtual Currency Trading and Speculation (September 2021)
Easevery_complex
Cost (USD)N/A - all crypto activity banned

Enforcement Activity

Level: High

No detailed enforcement information available

CBDC

StatusPilot
Namee-CNY
Issuing AuthorityPeople's Bank of China
Modelwholesale
TechnologyFeitian Technologies (Non-DLT)

AML / KYC

KYC RequiredYes
Travel RuleYes
FATF MemberYes
FATF Statuscompliant
FATF BodyFATF
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: Banned

DeFi activities are effectively banned in China as part of the broader prohibition on cryptocurrency trading and related activities.

Stablecoins

Status: Banned

Stablecoins are banned under the same regulatory framework that prohibits other virtual currency activities.

NFTs

Status: Restricted

Mining

LegalNo
Electricity Cost$0.076/kWh
Renewable Energy32%
Infrastructureexcellent

Crypto mining is banned in China since 2021 following government crackdowns. Electricity cost and renewable energy data are based on latest available statistics.

Geopolitical Risk

Stabilitystable
SanctionsNo
Corruption Index45/100
Banking Accessvery_restricted
Sanctions Program ActiveYes

Risk Factors

China maintains strict control over crypto activities including mining ban and severe restrictions on crypto businesses. Political stability is stable but internet freedom and banking access for crypto firms are very limited.

Recent Political Events

Sources

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Last reviewed: 2026-05-06 · Data source: Soken Crypto Legal Map

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