Can Businesses in China Accept Crypto Legally? The 2026 Reality

As of 2026, businesses in mainland China cannot legally accept cryptocurrency under any circumstances. It doesn’t matter if you’re a small online store, a restaurant, a tech startup, or a multinational corporation operating in Shanghai or Shenzhen-accepting Bitcoin, Ethereum, or any other digital asset is a criminal offense. This isn’t a gray area. It’s a hard, total ban backed by criminal penalties, surveillance systems, and coordinated enforcement across multiple government agencies.

It’s Not Just Illegal-It’s a Crime

In May 2025, China passed new legislation that made private ownership of cryptocurrency illegal. That means holding Bitcoin in a wallet, even for personal use, is now a crime. For businesses, this isn’t just about payment processing-it’s about possession. If a customer sends you 0.5 BTC for a product, you’re not just violating financial rules. You’re breaking the law by receiving and holding an illegal asset. The penalties include heavy fines, asset seizure, and possible imprisonment for business owners and executives.

The People’s Bank of China (PBOC) has been clear since 2021: all cryptocurrency transactions are illegal. But the 2025 law escalated this from a regulatory violation to a criminal act. The government doesn’t just want to restrict crypto-it wants to erase it from the financial system entirely. The goal? To ensure the digital yuan, China’s state-controlled central bank digital currency (e-CNY), becomes the only digital money allowed in the economy.

How Enforcement Works in Practice

You might think, “What if I don’t know it’s crypto? What if the customer pays anonymously?” That doesn’t matter. China’s financial monitoring system is built to catch crypto activity before it even happens. Banks and payment processors like Alipay and WeChat Pay are required to scan all transactions for signs of cryptocurrency-related activity. If money flows into or out of a wallet linked to a known exchange, or if a transaction pattern matches crypto trading behavior, the system flags it automatically.

Non-bank payment providers must report suspicious activity to the Ministry of Public Security. Internet companies are forced to block crypto-related websites and apps. Even foreign exchanges like Binance or Coinbase are legally barred from serving Chinese users. If a business tries to integrate a crypto payment gateway-whether through a third-party app or a custom solution-it will be detected. Enforcement isn’t random. It’s systematic, automated, and relentless.

In 2024, authorities arrested over 1,200 individuals for unlicensed crypto activity, including small business owners who accepted crypto as payment. Assets were seized, bank accounts frozen, and websites shut down. By 2025, those cases became criminal prosecutions. There are no exceptions for startups, nonprofits, or foreign-owned businesses operating in China. The law applies equally to everyone.

The Digital Yuan Is the Only Option

China isn’t banning crypto to punish innovation-it’s replacing it. The digital yuan is not just a digital version of cash. It’s a tool for total financial control. Every transaction is traceable. The government can track who paid whom, when, and for what. It can freeze funds, limit spending, or even program expiration dates on payments. This level of oversight is impossible with decentralized cryptocurrencies.

Businesses in China are actively encouraged to adopt the digital yuan. The government has rolled out subsidies for merchants who integrate e-CNY payment systems. Schools, public transport, and state-run hospitals now accept it. Over 500 million people have used the digital yuan app as of early 2026. For businesses, switching to e-CNY isn’t optional-it’s the only path to legal compliance. Any attempt to offer crypto as an alternative is seen as undermining national monetary policy.

Hong Kong Is Different-But It Doesn’t Help Mainland Businesses

Many people ask: “What about Hong Kong? Can’t businesses there accept crypto?” Yes. Hong Kong, as a Special Administrative Region, has its own legal system. Since 2023, it has licensed crypto exchanges, allowed stablecoin trading, and created rules for institutional crypto custody. Some mainland Chinese investors buy shares in Hong Kong-listed crypto firms to gain exposure-but that’s not the same as accepting crypto payments.

If you’re a business operating in Beijing, Guangzhou, or Chengdu, Hong Kong’s rules don’t apply to you. Even if you have a Hong Kong bank account or a subsidiary there, accepting crypto in mainland China still violates Chinese law. Cross-border transactions involving crypto are monitored and blocked. The Chinese government treats any attempt to bypass the ban through Hong Kong as a form of capital flight-a serious offense under its financial control laws.

Why This Ban Won’t Change

Some believe China might soften its stance as crypto becomes more mainstream globally. But the evidence suggests the opposite. The 2025 law was the final step in a 12-year plan that started with a 2013 warning to banks not to handle Bitcoin. By 2017, ICOs were banned. In 2021, mining was outlawed nationwide. By 2024, arrests began. The 2025 criminalization wasn’t a reaction-it was the planned endpoint.

China’s leadership sees cryptocurrency as a threat to two core goals: financial sovereignty and social control. If people can move money outside the state’s system, it weakens the government’s ability to manage the economy. It also opens the door to private financial networks that can’t be monitored or regulated. The digital yuan solves both problems. It’s faster than cash, more secure than traditional banking, and fully controllable by the state.

Global trends don’t matter here. The U.S., Singapore, and the EU are creating regulatory frameworks for crypto. China is building a wall around it. The government has invested billions into its digital currency infrastructure and has no interest in allowing competition. Businesses that assume China will eventually open up are misreading the strategy. This isn’t a temporary crackdown-it’s a permanent restructuring of the financial system.

What Happens If You Try Anyway?

Let’s say you’re a small e-commerce seller and you think, “I’ll just accept crypto for one customer.” Here’s what happens:

• Your payment processor flags the transaction as suspicious.
• The Cyberspace Administration logs your website’s activity.
• Your bank receives an alert and freezes your account.
• Local police show up at your business within 72 hours.
• You’re questioned, your devices are seized, and your transaction history is analyzed.
• You’re charged with illegal financial activity under Article 176 of China’s Criminal Law.
• You face fines up to 10 times the amount involved, and possible jail time.

There is no “first offense” exception. No warning. No grace period. The system is designed to deter, not educate.

What Should Businesses Do Instead?

If you’re running a business in mainland China, the only legal digital payment option is the digital yuan. Here’s what you need to do:

1. Register for an e-CNY merchant account through your bank or a licensed payment provider.
2. Integrate the official e-CNY payment SDK into your website or app.
3. Display the e-CNY logo prominently at checkout and in-store.
4. Train staff to handle e-CNY transactions-customers may need help using the app.
5. Do not mention, promote, or accept any cryptocurrency, even as a “bonus option.”

There are no gray areas. No loopholes. No workarounds. The digital yuan is not just the best option-it’s the only option.

International Businesses Operating in China

If you’re a foreign company with operations in China-whether you’re selling software, apparel, or services-you’re still bound by Chinese law. Your global crypto payment system won’t work here. Even if your headquarters is in New York or Berlin, if your China-based subsidiary accepts crypto, you’re breaking Chinese law.

Many international firms have learned this the hard way. In 2024, a U.S.-based SaaS company was fined $2 million after a Chinese customer paid in Bitcoin through a global Stripe integration. The company had assumed its offshore payment processor was sufficient. It wasn’t. The PBOC traced the transaction back to the Chinese entity and held the local branch accountable.

Bottom line: If you operate in China, you follow China’s rules. No exceptions.

Final Reality Check

There is no legal way for a business in mainland China to accept cryptocurrency in 2026. Not now. Not next year. Not unless the entire structure of China’s financial system changes-which it won’t. The digital yuan is the future, and crypto is the past. The government has spent over a decade building this system. It’s not going to dismantle it because of global trends or investor pressure.

If you’re considering entering the Chinese market, forget crypto payments. Focus on e-CNY integration. If you’re already accepting crypto, stop immediately. The risk isn’t just financial-it’s personal. And the consequences are real, immediate, and severe.