Can Businesses in China Accept Crypto Legally in 2025?

Can businesses in China accept crypto legally in 2025?

No. Businesses in mainland China cannot legally accept cryptocurrency under any circumstances as of 2025. It is not just restricted-it’s a criminal offense.

If a restaurant, online store, or service provider in Beijing, Shanghai, or Guangzhou tries to accept Bitcoin, Ethereum, or any other digital currency as payment, they’re breaking the law. Not just violating a rule. Not dodging a fine. Committing a crime.

The Chinese government didn’t just tighten rules. In May 2025, it passed legislation that made owning cryptocurrency a criminal act. That includes holding it in a wallet, trading it, mining it, or accepting it as payment. There are no exceptions for businesses. No gray areas. No loopholes. The moment a business accepts crypto, it crosses into illegal territory.

How did China get here?

This wasn’t sudden. It was a decade-long plan.

In 2013, Chinese banks were told not to process Bitcoin transactions. In 2017, Initial Coin Offerings (ICOs) were banned. By 2019, mining farms were shut down across Inner Mongolia and Sichuan. In 2021, the People’s Bank of China declared all crypto transactions illegal and ordered a nationwide shutdown of mining operations.

But even that wasn’t enough. In 2022, courts stopped recognizing crypto-related contracts in civil cases. In 2024, authorities started arresting people for running unlicensed crypto exchanges-even small operations run out of apartments.

The 2025 law was the final step. Now, simply holding cryptocurrency-even if you didn’t buy it, even if you got it as a gift-is punishable by law. Businesses are held to the same standard. No exceptions.

What happens if a business tries to accept crypto?

It doesn’t end with a warning.

Financial institutions in China are required to monitor every transaction for signs of cryptocurrency activity. If a business’s bank account receives a payment linked to a crypto wallet-even indirectly-the bank must report it. The Ministry of Public Security then investigates. If confirmed, the business faces criminal charges.

Penalties include heavy fines, asset seizures, and jail time. Executives can be personally held liable. Companies risk having their operating licenses revoked. Online platforms that list crypto payments as an option get shut down by the Cyberspace Administration.

Even trying to use a third-party crypto payment processor won’t work. Those services are blocked, and anyone offering them is considered part of an illegal financial network.

Why does China hate crypto so much?

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

China’s government wants to own the future of money-and that future is the digital yuan, or e-CNY. Unlike Bitcoin or Ethereum, the digital yuan is fully traceable. Every transaction is recorded by the central bank. Every dollar spent can be tracked. Every business’s cash flow is visible.

Cryptocurrencies threaten that control. They let people move money outside the system. They make capital flight easier. They let users avoid taxes, sanctions, and oversight. That’s unacceptable to a government that sees financial transparency as national security.

So while China encourages blockchain technology for supply chains and public records, it kills any decentralized alternative. The message is clear: digital money is fine-as long as the state controls it.

What about Hong Kong?

Hong Kong is different.

As a Special Administrative Region, it operates under its own legal system. In 2025, Hong Kong has a licensed crypto exchange regime. Firms can legally offer trading, custody, and even stablecoin services-with strict oversight.

But here’s the catch: this doesn’t apply to mainland China. A business in Shenzhen can’t use a Hong Kong-based crypto payment gateway. A Chinese customer can’t legally pay with Bitcoin even if the merchant is based in Hong Kong.

Some mainland investors buy shares in Hong Kong-listed crypto firms to get exposure. But that’s investing, not paying. And it’s still illegal for a mainland business to accept crypto as payment-even if the payment flows through Hong Kong.

How do businesses adapt?

They switch to the digital yuan.

The e-CNY is now widely accepted across China. It works through mobile apps, QR codes, and even offline payment chips. It’s faster than Alipay or WeChat Pay in some cases. And it’s the only digital currency the government allows.

Businesses are being pushed to adopt it. Local governments offer subsidies to retailers who integrate e-CNY. Banks provide free terminals. Even street vendors now display e-CNY QR codes alongside traditional payment options.

There’s no incentive to look elsewhere. Crypto isn’t just banned-it’s irrelevant. The government built a better alternative, and made sure nothing else could compete.

What about global trends?

China is an outlier.

Most countries are moving toward regulation, not prohibition. The U.S. is creating clearer rules for crypto firms. Singapore has a stablecoin framework. The U.K. and Japan have licensed exchanges. Even countries like Bahrain and South Africa are building crypto-friendly ecosystems.

China’s approach is the opposite: total elimination. It’s not about protecting consumers. It’s about protecting state power.

For businesses operating in China, that means one simple truth: crypto has no place in commerce here. Not now. Not next year. Not unless the entire political system changes.

What’s the future?

The future is digital yuan-or nothing.

There’s no sign China will soften its stance. The infrastructure for monitoring and enforcing the ban is too advanced. The political will is too strong. The digital yuan is too central to the country’s economic strategy.

Businesses that want to operate legally in China have one clear path: use the e-CNY. Everything else is illegal, risky, and potentially dangerous.

If you’re running a business in mainland China, accept crypto at your own peril. The law doesn’t care if you’re small, new, or didn’t know the rules. If you take crypto, you’re breaking the law. And the system is built to catch you.