How crypto tax works in China
The PBOC-led 2021 notice classified fiat conversion, central-counterparty trading, matching services, ICOs, and derivatives as illegal financial activity, and a February 2026 notice expressly replaced it while maintaining the prohibition stance.
Virtual currencies including Bitcoin, Ether, and Tether have no legal-tender status and must not circulate as money, while banks and payment institutions may not offer related services.
Overseas exchanges serving mainland residents online fall inside the ban, with monitoring, advertising controls, business-name restrictions, and criminal referral for fraud, laundering, and illegal fundraising.
Tax rates at a glance
- Classification
- Illegal activity
- Legal tender
- None
- Bank facilitation
- Prohibited
- Offshore venues
- Covered
- Hong Kong and Macao
- Separate
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Compliance officersExpatsCross-border foundersRisk teamsResearchers
Watch out for
- This is a prohibition file, not a rate file: there is no compliant holding-period or reporting path for mainland crypto business, only enforcement exposure.
- The February 2026 replacement notice extends scrutiny to newer structures, so arrangements designed around the 2021 text need fresh legal review rather than grandfathering assumptions.
- Hong Kong and Macao run separate virtual-asset regimes that do not shelter mainland activity, and cross-border movement of funds invites foreign-exchange scrutiny.
- Individual tax treatment of isolated holdings sits in legal grey with enforcement risk, so no declarable-gain framework here should be read as permission.
Frequently asked questions
Is crypto legal in mainland China?
Crypto business activity is classified as illegal financial activity under the PBOC-led notices, with the February 2026 text replacing the 2021 version. Banks may not facilitate it and offshore venues serving residents are covered.
Can Chinese banks handle crypto transactions?
No. Financial and non-bank payment institutions are barred from accounts, transfers, clearing, settlement, and related services for covered crypto activity.
Does Hong Kong's crypto regime cover the mainland?
No. Hong Kong and Macao maintain separate virtual-asset frameworks that do not authorise mainland business, and cross-border fund movement faces its own controls.