Crypto Adoption in China Despite Ban: How 59 Million Still Trade in 2025

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China banned cryptocurrency - yet millions still trade it

China outlawed crypto trading, mining, and exchanges in 2021. Officially, owning Bitcoin or Ethereum is illegal. Banks are forbidden from handling crypto transactions. Apps must block crypto wallets. Yet, by 2025, 59 million Chinese citizens are actively using cryptocurrency. That’s more than the entire population of Australia. How is this possible?

The answer isn’t rebellion. It’s adaptation. Chinese users didn’t stop using crypto. They just got smarter about how they use it.

How crypto stays alive under a ban

China’s ban targets businesses, not individuals - but even that loophole is blurry. The government says private ownership isn’t illegal, but it offers zero legal protection. If your crypto gets seized, frozen, or stolen? You have no recourse. Still, people keep doing it.

Most Chinese crypto users access exchanges like Binance, OKX, or Bybit - all of which officially left China in 2021. But they don’t use their real IP addresses. They use VPNs. A 2024 Chainalysis report found that 78% of Chinese crypto traders rely on virtual private networks to bypass government firewalls. Some use specialized apps like CryptoBridge or Silk Road Wallet, which hide behind encrypted domains and fake website fronts. These apps aren’t on the Google Play Store or Apple App Store. They’re downloaded from third-party Android stores or shared via WeChat.

Peer-to-peer (P2P) trading is the real backbone. Over 63% of all crypto transactions in China happen through P2P, according to a June 2025 Lightspark analysis. Buyers and sellers meet in WeChat groups or QQ chats. They use escrow services: one person sends money, the other sends crypto. The escrow holds it until both sides confirm. It’s risky - scams are common - but it’s the only way to trade without a bank.

Stablecoins are the secret weapon

Bitcoin and Ethereum are volatile. For everyday use in China, that’s a problem. So most people trade stablecoins - especially USDT (Tether).

By Q2 2025, 38.7% of all crypto transactions in China were in stablecoins, up from just 21.7% in 2024. Why? Because they’re a workaround for capital controls. If you want to send money to family abroad - say, for tuition in Australia or medical care in Canada - traditional banks charge high fees and take days. With USDT, you send it in minutes. The recipient cashes out locally. One user on WeChat’s ChainTalk forum said: “Using USDT to send money to my daughter in Australia saves me 87% in fees. Takes 15 minutes, not three days.”

Stablecoins also act as a hedge. With inflation concerns and property market crashes, some see crypto as a better store of value than yuan-denominated savings.

Two people conduct a secret crypto trade in a dark alley using a holographic escrow system and WeChat.

The digital yuan vs. crypto: Two worlds

While cracking down on Bitcoin, China is pushing its own digital currency: the e-CNY, or digital yuan. The People’s Bank of China launched it in 2020. By end of 2024, it had 260 million individual wallets and 15.5 million corporate wallets. In the first half of 2025, it processed 1.8 trillion CNY ($248 billion) in transactions.

The digital yuan isn’t crypto. It’s a state-controlled digital version of cash. Every transaction is tracked. The government knows who paid whom, when, and how much. It’s designed for control, not freedom.

That’s why crypto thrives in parallel. People don’t want to trade crypto because they hate the yuan. They want crypto because they want privacy. They want to move money without the state watching. The digital yuan is the opposite of that.

Who’s using crypto in China - and why

It’s not random. The users are specific.

Age matters. The biggest group? People aged 25 to 34. They make up 37.5% of Chinese crypto users - higher than the global average of 31%. Older users, over 45, are rare - only 12.8% of users. They don’t trust it. They don’t understand it.

Gender? Heavily skewed. 89.2% of users are male, compared to 86.9% globally. Tech-savvy young men dominate.

Why do they do it? Three reasons: investment, remittances, and distrust. Many see crypto as a way to grow wealth outside the stock market, which is tightly controlled. Others use it to send money overseas - something the government tightly restricts. And some just don’t trust the system. After real estate crashes, bank freezes, and corporate defaults, crypto feels like a backup plan.

The digital yuan's surveillance control contrasts with a rising phoenix of underground crypto users sending USDT.

The cost of breaking the rules

It’s not risk-free. In Q1 2025 alone, Chinese users lost 1.2 billion CNY ($165 million) to crypto scams, according to the China Cybersecurity Association. Fake exchanges, fake P2P escrow services, and phishing attacks are everywhere.

Account freezes are common. A Reddit survey from r/CryptoChina found that 68% of users had at least one bank account frozen because of crypto activity. The average loss per freeze? 23,500 CNY ($3,250). Some lost everything.

And the government isn’t backing down. In May 2025, China’s State Administration of Foreign Exchange shut down 27 P2P platforms. In July, the People’s Bank of China froze 1,287 bank accounts and fined individuals 237 million CNY ($32.6 million) for crypto-related violations.

Yet, despite all this, 82% of users in the same Reddit survey said they’re still trading - and 45% are investing more than they did in 2024.

What’s next? The quiet shift

Is China going to lift the ban? Probably not soon. But it’s not as rigid as it looks.

Documents from the Shanghai State-owned Assets Supervision and Administration Commission, leaked in July 2025, suggest officials are starting to acknowledge reality. One deputy director said: “The rapid evolution of digital assets necessitates more nuanced regulatory approaches.”

Meanwhile, Hong Kong - still technically part of China but operating under its own legal system - has become a crypto hub. Seven exchanges are now licensed there. In April 2025, they processed $14.3 billion in monthly trading volume. Many Chinese users access these platforms through Hong Kong-based accounts.

Some analysts, like those at Bernstein, predict China will eventually adopt a model like India’s: a 30% tax on crypto gains, not a ban. That would mean legalization with heavy regulation. The probability? 65% by 2027.

For now, the ban stands. But enforcement is uneven. The government can shut down exchanges. It can freeze bank accounts. But it can’t stop people from sending USDT through WeChat. It can’t stop a 28-year-old engineer in Shenzhen from buying Bitcoin with a VPN and a friend’s escrow service.

China didn’t kill crypto. It forced it underground. And underground, it grew stronger.

Why this matters beyond China

This isn’t just a China story. It’s a global one.

If a country with the world’s most advanced surveillance state can’t stop crypto adoption - what does that mean for other nations? What happens when people value privacy and freedom of movement more than government control?

China’s experiment shows that bans don’t eliminate demand. They just make it more dangerous, more hidden, and more sophisticated. The people who use crypto in China aren’t speculators. They’re survivors. They’re using technology to protect what they have - money, family, future.

That’s not rebellion. That’s human behavior.

Is it legal to own Bitcoin in China in 2025?

Technically, owning Bitcoin or other cryptocurrencies isn’t explicitly illegal for individuals - but it’s not protected by law either. The government considers it a gray area. If you’re caught trading, your bank accounts can be frozen, and you can be fined. You have no legal recourse if you’re scammed. So while you can hold crypto, doing so carries serious personal and financial risk.

How do Chinese people buy crypto if exchanges are banned?

Most use offshore exchanges like Binance, OKX, or Bybit through VPNs. The most common method is peer-to-peer (P2P) trading via WeChat or QQ groups. Buyers and sellers agree on a price, use escrow services to hold funds, and complete the trade. Some use specialized apps like CryptoBridge that bypass app store restrictions. Cash deposits and mobile top-ups are also used to fund P2P trades.

Why are stablecoins like USDT so popular in China?

Stablecoins are used because they’re tied to the U.S. dollar and avoid the volatility of Bitcoin or Ethereum. They’re the easiest way to move money across borders without triggering bank scrutiny. People use them to send money to family abroad, pay for overseas education, or protect savings from yuan depreciation. They’re faster, cheaper, and more reliable than traditional banks.

What’s the difference between China’s digital yuan and Bitcoin?

The digital yuan (e-CNY) is a government-controlled digital version of cash. Every transaction is tracked by the central bank. Bitcoin is decentralized, anonymous, and not controlled by any authority. The digital yuan is designed for surveillance and control. Bitcoin is used to avoid it. They’re opposites in purpose - even if both are digital.

Are Chinese crypto users getting scammed often?

Yes. In Q1 2025, Chinese users lost 1.2 billion CNY ($165 million) to crypto scams, according to the China Cybersecurity Association. Common scams include fake P2P escrow services, phishing apps, and fake exchange websites. Many users lose everything because there’s no legal protection. The more you try to hide your activity, the more vulnerable you become to fraud.

Will China ever legalize cryptocurrency?

A full legalization is unlikely soon. But a regulated model - like India’s 30% tax on crypto gains - is possible by 2027, according to Bernstein analysts. The government may allow trading through licensed platforms while taxing profits and tracking users. This would end the underground market, but only by replacing it with state-controlled access. For now, the ban remains strict, but enforcement is becoming harder.

23 Comments

James Edwin
November 19, 2025 AT 10:31

This is wild. People are using crypto not to gamble, but to survive. The system failed them, so they built their own. No cheers, no flags - just quiet, desperate innovation.

And it’s not even about Bitcoin as money. It’s about freedom to move value without permission.
Kris Young
November 20, 2025 AT 07:22

I'm sorry, but this is just illegal. You can't have a society where people bypass financial controls just because they don't like the rules. The government has a responsibility to maintain order.
LaTanya Orr
November 20, 2025 AT 11:08

It’s fascinating how humans find ways to be free even when freedom is outlawed. The ban didn’t kill crypto - it just made it more human.

People aren’t trading for profit. They’re trading to protect their dignity.
Ashley Finlert
November 21, 2025 AT 13:29

The elegance of this phenomenon lies in its quiet defiance. A state with unparalleled surveillance infrastructure, capable of tracking every digital footprint, finds itself powerless against the simple act of sending a digital token through a messaging app.

This is not a technical victory. It is a philosophical one. The human desire for autonomy, privacy, and self-sovereignty cannot be legislated out of existence. The digital yuan may be efficient - but it is soulless. Crypto, in its chaotic, unregulated, risky glory, is alive. And life, no matter how underground, finds a way.
Chris Popovec
November 23, 2025 AT 03:38

Let’s be real - this is all a psyop. The Chinese government *wants* people to use crypto. Why? So they can track every single transaction through the backdoors in P2P escrow apps. They’re gathering behavioral data on millions of citizens under the guise of ‘enforcement’.

And don’t get me started on USDT. Tether is a shell company with zero reserves. This whole thing is a liquidity trap designed to drain wealth from the middle class. The real agenda? Centralized control disguised as decentralization.
Marilyn Manriquez
November 24, 2025 AT 14:46

The fact that millions risk everything to move money freely speaks volumes about what people truly value. Not wealth. Not speculation. But the ability to care for their families without asking permission.
taliyah trice
November 24, 2025 AT 17:09

So people use WeChat to send crypto. That’s it. That’s the whole story.
Charan Kumar
November 26, 2025 AT 03:11

In India we have same thing with crypto even after tax. People still trade. Human nature dont change. Just need freedom to move money
Peter Mendola
November 27, 2025 AT 12:36

63% P2P? That’s a red flag. No legitimate market operates like this. It’s a cesspool of fraud, money laundering, and state-sanctioned exploitation.

And yes, I’m aware the government is cracking down. That’s the only sane response.
Terry Watson
November 29, 2025 AT 04:18

I can’t believe people still think this is ‘resilience’ - it’s desperation. These aren’t investors, they’re hostages. Trapped in a system that won’t let them save, won’t let them send money home, won’t even let them believe their own currency has value.

And now they’re gambling with their life savings through sketchy WeChat groups? That’s not innovation - that’s tragedy dressed up as rebellion.
Sunita Garasiya
November 29, 2025 AT 13:08

Oh so China bans crypto but people still use it - shocking. Next you’ll tell me water is wet and the sky is blue. The real story? The government is too busy counting its own digital yuan coins to notice a few million people using WhatsApp to send USDT.

It’s not a revolution. It’s a glitch in the matrix.
Mike Stadelmayer
December 1, 2025 AT 04:33

Honestly? I’m not surprised. People will always find a way to protect what matters. Whether it’s food, medicine, or money - if the system won’t serve you, you build your own.

China didn’t lose the crypto war. They just lost the ability to control how people think about value.
Norm Waldon
December 1, 2025 AT 18:28

This is a classic case of cultural decay. The Chinese people have been manipulated into believing that digital chaos is freedom. Meanwhile, the West is collapsing under its own moral relativism. You think this is a victory? It’s the slow suicide of a society that traded order for illusion.
neil stevenson
December 3, 2025 AT 01:07

USDT in WeChat? That’s the new normal. I’ve seen it. My cousin in Guangzhou sends money to his sister in Canada every month. No bank. No forms. Just a QR code and a text. Simple. Efficient. Human.

They’re not breaking rules. They’re fixing a broken system.
Samantha bambi
December 3, 2025 AT 18:50

It’s not about Bitcoin. It’s about trust. People don’t trust their government to protect their savings. They don’t trust banks. They don’t trust the property market. So they trust code - because code doesn’t lie.

And honestly? That’s kind of beautiful.
Anthony Demarco
December 5, 2025 AT 18:04

The real story here is that China’s ban is a joke. They pretend to control the internet, but they can’t even stop their own citizens from using WhatsApp to send crypto. This isn’t defiance - it’s incompetence. The state is out of touch, out of power, and out of ideas.
Lynn S
December 7, 2025 AT 08:15

This is not a story of resilience. It is a story of reckless, ill-informed citizens risking everything for a digital fantasy. No legal protection? No oversight? No accountability? This isn’t innovation - it’s financial recklessness masquerading as enlightenment. And those who praise it are either naive or dangerous.
Jack Richter
December 8, 2025 AT 03:20

Meh.
sky 168
December 8, 2025 AT 19:35

The fact that people are using crypto to send money to family abroad says more than any policy paper ever could. It’s not about speculation - it’s about love.
sammy su
December 9, 2025 AT 17:21

I used to think crypto was just for rich tech bros. Then I talked to my uncle in Chengdu. He sends USDT to his daughter studying in London. Saves him 90% on fees. No bank delays. No paperwork. Just a text and a tap.

They’re not rebels. They’re just parents trying to do right by their kids.
Khalil Nooh
December 10, 2025 AT 04:36

The Chinese government banned crypto - but they didn’t ban human ingenuity. They didn’t ban the need to protect your family. They didn’t ban the desire to move money without being watched.

What they did was force it into the shadows. And in the shadows, it became more powerful. The ban didn’t kill crypto. It made it sacred.
jack leon
December 10, 2025 AT 13:20

This isn’t crypto. This is a revolution in slow motion - written in USDT, whispered over WeChat, coded in VPNs, and paid for in stolen years of sleep, frozen bank accounts, and scraped-together cash. These aren’t traders. They’re architects of a new kind of freedom - one built brick by brick in the dark.

And guess what? The state is watching. But they’re too late. The code is already out. The money is already moving. The people? They’re already free.
James Edwin
December 11, 2025 AT 16:21

The digital yuan tracks every cent. Crypto lets you vanish. That’s the entire difference. One is a cage with a digital lock. The other is a door in the wall - no one knows where it leads, but it’s there.