China prohibits all virtual currency business activities as illegal financial activities under the PBOC-led Notice Yinfa [2026] No. 42 of 6 February 2026, which replaced the September 2021 notice and extends the ban to unapproved RMB-pegged stablecoins and real-world asset tokenization. Overseas providers may not serve mainland users, and crypto mining remains banned.
| Status | Banned |
| Risk Score | 70/100 (High Risk) |
| Region | asia pacific |
| Currency | CNY |
| Capital Gains (Personal) | N/A - crypto trading banned since September 2021 |
| Capital Gains (Corporate) | N/A - all crypto business activities prohibited |
| VAT on Crypto | No |
| Staking Tax | N/A |
| Airdrop Tax | N/A |
No crypto-specific tax guidance available.
| Required | No |
| Regulator | PBOC / CSRC / NFRA |
| Framework | PBOC and seven agencies Notice on Further Preventing and Dealing with Virtual Currency and Related Risks (Yinfa [2026] No. 42, 6 February 2026), superseding the September 2021 notice; covers stablecoins and RWA tokenization |
| Ease | very_complex |
| Cost (USD) | N/A - all crypto activity banned |
No detailed enforcement information available
| Status | Pilot |
| Name | mBridge |
| Issuing Authority | Saudi Arabian Monetary Authority, Hong Kong Monetary Authority, People's Bank of China, United Arab Emirates Central Bank, Bank of Thailand |
| Model | wholesale |
| Technology | DLT |
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | compliant |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: Banned
DeFi activities are banned in China under the comprehensive prohibition on cryptocurrency. Technology platforms are mandated to block DeFi interfaces and decentralized wallets. The Feb 2026 directive extended controls to RWA tokenization, a closely related area.
Status: Banned
Stablecoins are explicitly banned under both the 2021 Joint Notice and a new February 2026 PBOC + 7-agency directive targeting RMB-pegged stablecoins and RWA tokenization specifically.
Status: Restricted
| Legal | No |
| Electricity Cost | $0.076/kWh |
| Renewable Energy | 32% |
| Infrastructure | good |
Cryptocurrency mining is banned nationwide following regulatory crackdowns. Electricity cost data from 2026. Infrastructure for data centers is good, but mining operations are prohibited.
| Stability | moderate |
| Sanctions | Yes |
| Corruption Index | 45/100 |
| Banking Access | restricted |
| Sanctions Program Active | Yes |
Risk Factors
China has moderate political stability but faces significant international sanctions and strict regulatory environment impacting crypto businesses. Internet freedom is limited and banking access for crypto firms is restricted.
Recent Political Events
China prohibits all virtual currency business activities as illegal financial activities under the PBOC-led Notice Yinfa [2026] No. 42 of 6 February 2026, which replaced the September 2021 notice and extends the ban to unapproved RMB-pegged stablecoins and real-world asset tokenization. Overseas providers may not serve mainland users, and crypto mining remains banned.
China is classified by FATF as: compliant.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-06 · Data source: Soken Crypto Legal Map
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