It is illegal to buy and sell Bitcoin in China.
Domestic buying and selling of Bitcoin is illegal.
In September 2021, the People's Bank of China and ten other departments issued the "Notice on Further Preventing and Dealing with the Risks of Speculation in Virtual Currency Transactions" (hereinafter referred to as the "924 Notice"), which clearly stated:
Virtual currency does not have the same legal status as legal tender.
No organization or individual is allowed to issue, sell, or purchase virtual currency in China,
Overseas virtual currency exchanges are not allowed to provide services to residents in China.
The notice also requires financial institutions and payment institutions not to provide account opening, transaction settlement, clearing and other services for virtual currency transactions.
The issuance of the “924 Notice” means that Bitcoin transactions in China are completely prohibited.
The reasons are as follows:
Bitcoin has financial properties, but lacks supervision. Bitcoin can be used for payment, investment, etc., and has financial attributes. However, Bitcoin lacks supervision and can easily be used for illegal activities such as money laundering and terrorist financing.
The price of Bitcoin fluctuates violently, which can easily lead to financial risks. Bitcoin prices fluctuate violently, and investors are prone to heavy losses.
Bitcoin trading can easily breed unhealthy habits such as gambling. Bitcoin trading is speculative and can easily breed unhealthy habits such as gambling.
Therefore, the Chinese government bans Bitcoin transactions to prevent financial risks and maintain financial order.
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