China cryptocurrency law

When China tightened its crypto rules last year, the whole market felt the tremor. China cryptocurrency law, the set of rules that govern digital assets, trading platforms and token issuers in the People’s Republic of China, also known as Chinese crypto regulation, reshapes how projects approach compliance. It directly influences crypto licensing, the process of obtaining state approval to operate a cryptocurrency service or exchange, forces many firms into regulatory sandbox, a controlled environment where innovators can test blockchain solutions under relaxed supervisory rules, and triggers a wave of exchange bans, government orders that prohibit specific crypto exchanges from serving Chinese residents. In short, the law encompasses licensing rules, requires sandbox participation for new projects, and drives exchange bans that limit market access.

Key aspects you need to know

First, licensing has become a gatekeeper. Under the law, any platform that matches users, offers wallet services or facilitates fiat‑crypto conversion must register as a financial institution or obtain a special digital‑asset license. The fee schedule ranges from a few hundred thousand yuan for small‑scale services to multi‑million yuan for nationwide exchanges. This mirrors the U.S. MSB and BitLicense model, but with stricter capital requirements and tighter AML controls. If you’re building a token, you’ll need to file a prospectus‑style whitepaper with the China Securities Regulatory Commission (CSRC) before any public sale.

Second, sandbox programs are the test lanes for compliance. China’s pilot sandbox in Shanghai lets startups run limited‑scope token sales while the regulator monitors anti‑money‑laundering (AML) logs and real‑time transaction flows. Successful pilots receive a provisional license that can be upgraded after a 12‑month audit. The sandbox concept also appears in the EU’s MiCA framework, offering a cross‑border bridge for projects that want to launch in both regions without rebuilding compliance layers.

Third, exchange bans have created a fragmented market. Major platforms like Binance, Huobi and OKX are either blocked outright or forced to operate offshore without serving Chinese IP addresses. Traders now rely on VPNs or peer‑to‑peer (P2P) networks, which pushes liquidity to decentralized exchanges (DEXs) that sit outside the jurisdiction. This shift fuels interest in sandbox‑approved DEX models that can legally host Chinese users while still offering compliance reporting.

The collection of articles below shows how these pieces fit together. You’ll find step‑by‑step licensing guides, sandbox application checklists, analyses of exchange bans, and comparisons with global regimes such as MiCA and Thailand’s crypto licensing rules. Whether you’re a developer, an investor, or just curious about how China’s approach reshapes the global crypto scene, the posts give you practical tools to navigate the new landscape.