Crypto Business China: Underground Trading, Bans, and Real Market Risks

When you hear Crypto Business China, the illegal but thriving ecosystem of cryptocurrency trading and services operating inside China despite government bans. Also known as underground cryptocurrency, it's not a myth—it's a $86.4 billion annual market that refuses to die. China doesn’t just discourage crypto—it bans banks, exchanges, and mining operations. Yet people still trade Bitcoin, Ethereum, and dozens of altcoins. How? Through peer-to-peer platforms, encrypted apps, and cash deals in back alleys and WeChat groups.

The PBOC crypto rules, the People’s Bank of China’s strict regulatory framework that prohibits financial institutions from handling crypto transactions hit hard in 2021, shutting down domestic exchanges like Huobi and OKX. But the ban didn’t kill demand—it just pushed it underground. Traders now use local currency (CNY) via P2P marketplaces, often paying premiums to avoid government monitoring. Some even use VPNs to access foreign exchanges, risking account freezes or worse. The crypto ban China, a nationwide prohibition on crypto trading, mining, and financial services tied to digital assets is enforced through surveillance, bank audits, and social credit penalties. But enforcement is uneven. In cities like Shenzhen and Chengdu, crypto meets cash in quiet coffee shops where traders meet face-to-face.

What’s surprising isn’t that people trade—it’s that they keep trading despite the risks. The Chinese government controls the yuan, and inflation, capital controls, and property market crashes make crypto look like the only escape hatch for many. Real estate tokenization? Not allowed. Stock investing? Restricted. Crypto? It’s the only asset class with no borders and no middlemen. That’s why, even in 2025, the underground market thrives. You won’t find it on CoinMarketCap. You’ll find it in encrypted Telegram channels, in QR codes passed between strangers, and in the quiet desperation of people who have no other way to protect their savings.

Below, you’ll find real stories from inside this hidden economy: how traders bypass the ban, what happens when you get caught, why some coins survive while others vanish, and how the next wave of crypto tools is being built—not in Silicon Valley, but in Shanghai basements and Guangzhou internet cafes.