Assets, Bitcoin

Is Bitcoin Allowed in China?

Since China’s Central Bank declared that Bitcoin is not a currency in 2013, the crypto-community has been asking if Bitcoin is allowed in China. The simple answer is “Yes”, but there are a lot of nuances to that answer.

Here’s what you need to know about Bitcoin and China.

Bitcoin first came to prominence in China back in 2013 when the world’s then largest BTC exchange, BTC China, was founded. At that time, Bitcoin was seen as a way to skirt the strict controls that the Chinese government had over its currency, the yuan.

Since then, however, the Chinese government has cracked down on Bitcoin and other cryptocurrencies. exchanges have been shut down, and Initial Coin Offerings (ICOs) have been banned.

NOTE: WARNING: Bitcoin is currently not allowed in China. Chinese authorities have recently cracked down on cryptocurrency exchanges and have banned initial coin offerings (ICOs). While some people are still trading Bitcoin and other cryptocurrencies on peer-to-peer networks, it is not advised as it could result in serious legal penalties.

So while you can still technically buy and sell Bitcoin in China, it’s become much harder to do so.

That said, there are still some ways to buy and sell BTC in China. LocalBitcoins, for example, is a peer-to-peer BTC marketplace that allows buyers and sellers to trade Bitcoin without an intermediary.

There are also a few cryptocurrency exchanges that are still operating in China despite the crackdown. These exchanges typically don’t allow fiat currency withdrawals, however, so you’ll need to first buy BTC with another cryptocurrency before trading it for yuan.

Another option is to use a VPN to access a foreign exchange. This isn’t recommended, however, as the Chinese government has been cracking down on VPN usage as well.

So while you can technically still buy and sell Bitcoin in China, it’s become much harder to do so since the government crackdown began in 2017. If you want to invest in BTC or trade it for yuan, your best bet is to use a peer-to-peer marketplace like LocalBitcoins or a foreign exchange accessed via VPN.

Previous ArticleNext Article