Can Businesses in China Accept Crypto Legally in 2026?

As of 2026, businesses in mainland China cannot legally accept cryptocurrency under any circumstances. It’s not a gray area. It’s not a loophole. It’s a full criminal prohibition.

There is no legal pathway for crypto payments in China

Any business-whether it’s a small shop in Shanghai, a tech startup in Shenzhen, or a multinational retailer in Beijing-that accepts Bitcoin, Ethereum, or any other cryptocurrency as payment is breaking the law. This isn’t a 2021 rule that got relaxed. It’s not a policy that’s still being debated. Since May 30, 2025, holding or transacting in cryptocurrency has been classified as a criminal offense in mainland China.

The government didn’t just ban exchanges or mining. It banned ownership. That means if a business receives even one Bitcoin as payment for goods, it’s now committing a crime. The same applies if a company tries to store crypto in a digital wallet, use it for payroll, or convert it to fiat currency through any channel. There are no exceptions for size, industry, or intent.

How did China get here?

This wasn’t sudden. China’s crackdown on crypto unfolded over a decade in clear, escalating steps.

In 2013, banks were told not to process Bitcoin transactions. In 2017, Initial Coin Offerings (ICOs) were shut down, and domestic crypto exchanges like OKEx and Huobi were forced to move offshore. By 2021, the People’s Bank of China declared all crypto transactions illegal and ordered the complete shutdown of mining operations across the country. That meant thousands of data centers in Sichuan and Inner Mongolia were shut down overnight.

The crackdown got stricter after that. In 2022, courts stopped recognizing crypto-related contracts in civil disputes. If someone lost money in a crypto deal, they had no legal recourse. In 2024, authorities started making arrests. People were detained for running unlicensed crypto ATMs or using crypto to pay suppliers. Seizures of digital wallets became common.

Then came May 2025. The law changed. Now, simply owning cryptocurrency-whether you bought it, mined it, or received it as payment-is a criminal act. The punishment can include fines, asset seizure, and even imprisonment. No business is exempt.

Why does China hate crypto so much?

It’s not about technology. It’s about control.

China’s government wants every yuan spent, saved, or transferred to be traceable. That’s why it spent over a decade developing the digital yuan (e-CNY)-a state-controlled digital currency that lets authorities see every transaction in real time. Crypto, by design, is anonymous and decentralized. It can’t be tracked. It can’t be frozen. It can’t be taxed at the government’s whim.

That’s a direct threat to China’s financial sovereignty. If businesses could use crypto, people could bypass capital controls. Money could leave the country. Tax revenue could vanish. The central bank could lose control over monetary policy.

So China made a choice: eliminate all competition to the digital yuan. No exceptions. No compromises.

What happens if a business tries anyway?

If a business accepts crypto, it’s not just a regulatory violation-it’s a criminal investigation.

Financial institutions in China are required to monitor all customer transactions for signs of crypto activity. If a business receives a payment from a wallet linked to a known exchange, the bank automatically flags it. The system doesn’t ask if it was intentional. It doesn’t care if the business didn’t know the rules. The transaction is reported to the Ministry of Public Security.

Once flagged, investigators can freeze business accounts, seize assets, and charge the owners with illegal financial activity. Internet companies are also required to block crypto-related websites and report users who try to access overseas exchanges. Even advertising crypto services online is illegal.

There’s no warning. No fine first. No probation. One crypto payment, and you’re in the crosshairs of China’s coordinated enforcement system-where the Cyberspace Administration, the Ministry of Industry, and the People’s Bank all work together to shut you down.

What about Hong Kong?

Hong Kong is not China when it comes to crypto.

As a Special Administrative Region, Hong Kong has its own legal system. It’s not bound by mainland China’s 2025 ban. In fact, Hong Kong has moved in the opposite direction. It now licenses crypto exchanges, regulates stablecoins, and allows trading of crypto ETFs. Major firms like HashKey and OSL operate legally under Hong Kong’s rules.

But here’s the catch: this doesn’t help businesses in mainland China. A company in Guangzhou can’t use a Hong Kong exchange to accept crypto. The moment funds move into mainland China, they’re subject to the 2025 law. Even buying shares in a Hong Kong-listed crypto company is legal-but only as an investment. You still can’t accept crypto as payment in Shenzhen.

There’s no workaround. No legal bridge. No gray zone.

What should businesses do instead?

If you’re running a business in mainland China, the only digital currency you can legally accept is the digital yuan (e-CNY).

The government has rolled out the e-CNY in over 200 cities. You can receive payments through apps like WeChat Pay and Alipay, which now integrate the digital yuan. Transactions are instant, low-cost, and fully compliant. Unlike crypto, the e-CNY gives you the benefits of digital money-without the legal risk.

Many businesses have already switched. Retailers, restaurants, and service providers now display e-CNY QR codes alongside traditional payment options. The government even offers subsidies to small businesses that adopt the system.

There’s no upside to trying crypto. Only massive risk.

How does this compare to the rest of the world?

China is an outlier.

Most countries are moving toward regulation, not prohibition. The U.S. is creating clearer rules for crypto businesses. Singapore has a licensing regime for exchanges. The European Union passed MiCA, a comprehensive crypto law. Even countries like South Africa and Bahrain are building frameworks to allow crypto under supervision.

China is the only major economy that has made crypto ownership a crime. It’s not about safety. It’s about control. And it’s not changing.

What’s the future?

The 2025 ban isn’t temporary. It’s the endpoint of a 12-year strategy. China is doubling down on the digital yuan. It’s investing billions into expanding its reach. It’s training merchants to use it. It’s integrating it into public services like utilities and healthcare.

There’s no sign of reversal. No political movement pushing for crypto freedom. The Communist Party sees crypto as a threat-not an innovation.

For businesses in mainland China, the message is simple: accept digital yuan. Ignore crypto. Or risk everything.