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Cryptocurrencies continue reshaping the financial landscape, with China being a complex key player. Amidst this digital revolution, finding the best crypto exchange in China holds the key to unlocking your assets' potential. But is Bitcoin legal in China? Is any crypto legal inside Chinese borders?
China's crypto regulations are intricate, overseen by the People's Bank of China (PBOC). With a restrictive approach, the PBOC has issued directives, leading to local exchange and ICO bans. Despite this, Chinese investors are constantly looking for ways to access global platforms like Binance, Kraken, Coinbase, and others.
Today, I'll guide you through the Chinese crypto landscape and review the best crypto exchanges China residents can access (with a bit of help from a VPN):
- Binance – A Comprehensive Crypto Ecosystem
- Kraken – Secure and Transparent
- Bitfinex – Automated Multiple Limit Order Creation
- HashKey Exchange - Hong Kong’s Licensed Crypto Exchange
- CEX.IO – Effortless Learning and User-Friendly Trading
- OKX – User Interface in Chinese
- LBank - A Feature-Rich Crypto Exchange
But before going through this list of crypto exchanges China residents can access, let's talk about the country's crypto landscape.
Crypto Landscape in China
So, is cryptocurrency legal in China? Well, you might have heard that the country's crypto landscape is quite hectic. Understanding this is surely important before trying to find the best crypto exchange in China.
TL;DR:
- China's Stance. As of writing, crypto is not legal in China. Overall, the country has a history of implementing strict regulations and bans on various aspects of the cryptocurrency industry, including Bitcoin trading, initial coin offerings (ICOs), and, most notably, cryptocurrency mining.
- Crypto Mining Ban. In 2021, China imposed a ban on cryptocurrency mining, leading to a significant drop in Bitcoin's hash rate and driving many miners out of the country. This move also came with a ban on all cryptocurrency trading and transactions, with harsh penalties for those involved. The best Chinese crypto exchanges fled the country.
- Cryptocurrency Ownership. While China has banned many cryptocurrency-related activities, it's important to note that there are no specific policies against owning digital assets like Bitcoin, Dogecoin, or Ethereum. Holding cryptocurrencies in a wallet is not against the law.
- Hong Kong's Different Path. In August 2023, Hong Kong took a different approach, acknowledging the significance of cryptocurrencies and granting licenses to cryptocurrency exchanges. This marked a departure from mainland China's stringent stance.
- Complex Regulatory Landscape. The regulatory landscape in China reflects the broader global challenge of regulating cryptocurrencies. Their decentralized nature, accessibility via the internet, and cross-border nature make them difficult to control on a national level.
Now, for those who want to get the full picture:
China's journey through the crypto landscape has been a roller coaster ride, marked by bans, restrictions, and unexpected turns.
In 2021, the shockwaves it sent through the blockchain sector were felt globally when it announced extreme restrictions on Bitcoin mining and crypto trading (which was a top cryptocurrency in China, by the way). This move wasn't entirely unprecedented, as China had a history of wavering crypto stances.
In 2011, China's interest in Bitcoin started to grow, largely due to the establishment of Bitcoin China, a centralized exchange founded by software engineer Bobby C. Lee.
This exchange played a significant role in global Bitcoin trading activity. The following years saw the top cryptocurrency in China's adoption growing, with Chinese businesses even accepting it as payment.
However, 2013 marked China's first attempt to clamp down on Bitcoin trading. The People's Bank of China issued rules that restricted financial institutions from holding or transacting in virtual currencies like BTC.
So, was Bitcoin legal in China at this point?
Well, this didn't make buying or using Bitcoin illegal for citizens, but it certainly made it more challenging.
In 2017, China's focus shifted to ICOs, leading to a ban on platforms offering these tokens due to concerns about scams. Centralized crypto exchanges also faced closures. This was a time when Bitcoin China rebranded to BTCC and moved its headquarters to the UK.
Then came the watershed moment in 2021 when China imposed a ban on crypto mining, leading to a significant drop in Bitcoin's hash rate. Along with the mining ban, all crypto trading and transactions were outlawed, with severe penalties for those associated with the industry. The platforms you used to find in the best Chinese crypto exchange lists fled the market.
At that point in history, when asked, "Is cryptocurrency legal in China?", most people would reply with a definitive "no".
The reasons behind China's crypto ban are varied, from concerns about scams and capital flight to the desire to maintain control over its own central bank digital currency (CBDC) initiatives.
Despite China's bans, cryptocurrencies have proven difficult to entirely shut down. Bitcoin mining, for instance, continued even after the ban, and some Chinese mining pools operated underground.
The decentralized nature of cryptocurrencies, coupled with their accessibility via the internet, presents challenges in terms of regulation and enforcement. Furthermore, the global reach of crypto renders it difficult for any single nation to impose a complete ban.
Fast-forward to August 2023, Hong Kong, a semi-autonomous Chinese territory, embraced cryptocurrencies, recognizing their importance for the global financial hub.
The Hong Kong Securities and Futures Commission granted licenses to HashKey Exchange and OSL, marking a shift in attitude compared to mainland China's stance on crypto.
This move highlights the uniqueness of Hong Kong's "one country, two systems" arrangement, which allows the city to shape its financial policies. It also aligns with China's indirect interest in maintaining influence over the cryptocurrency industry while focusing on its own CBDC and metaverse projects.
As the crypto landscape continues to evolve, China's bans have had far-reaching effects, but they have also revealed the resilience and adaptability of the crypto ecosystem.
While China's regulatory stance has shifted, the future remains uncertain, as the global cryptocurrency industry undergoes transformations, presenting both opportunities and challenges for regions like Hong Kong.
That said, is cryptocurrency legal in China now? Not really, but Chinese traders still find ways to participate in crypto trading[1]. So, how do they do that?
How Chinese Investors Access Crypto Trading?
In China, navigating the crypto landscape requires more than just financial acumen; it demands ingenuity in overcoming regulatory barriers. To circumvent these restrictions, many turn to virtual private networks (VPNs) as a crucial tool in their trading arsenal.
A VPN essentially is a technology that allows users to create a secure, encrypted connection to servers outside their national borders. This disguises their IP address and gives the appearance of accessing the internet from another country[2], effectively sidestepping domestic restrictions.
VPNs offer notable benefits for crypto trading. However, you have to keep in mind that the legality of VPNs has always been questionable. While they are legal in most countries, China has severe restrictions on VPN usage and blocks many VPN providers.
Therefore, choosing this approach to access cryptocurrency exchanges in China comes with potential hurdles, so tread at your own risk.
1. Binance – A Comprehensive Crypto Ecosystem
Ranks #1 out of 7 Crypto Exchanges
- + A very well-known crypto exchange platform
- + More than 500 different cryptos available
- + Two-factor authentication
- + Extensive trading options
- + Emphasis on security and KYC
- + Supports fiat-crypto acquisitions
- - Reports of mediocre customer support
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When it comes to the realm of cryptocurrencies, Binance is regarded by many as the best Chinese crypto exchange.
Despite the ban on cryptocurrency trading, Binance continues to reign as one of the largest and most vibrant crypto exchanges among Chinese investors. This is a testament to the enduring appetite for digital assets within the country.
Binance's presence in China is profound, constituting a staggering 20% of its global trading volume. As reported in August 2023, Chinese users collectively facilitated transactions amounting to around $90 billion in a single month, reaffirming China's role as a crypto powerhouse on the global stage.
Binance's journey began in 2017, with its origins in Shanghai. Founded by Changpeng "CZ" Zhao, who was born in China but raised in Canada, the exchange swiftly gained traction.
However, it left its homeland behind in response to the Chinese government's crackdown on cryptocurrency-related activities. This move came amid concerns about capital flight. But Binance still couldn't be left out of this list of crypto exchanges in China.
So, why choose Binance for your crypto endeavors?
With an average daily trading volume reaching tens of billions of dollars, Binance offers a comprehensive suite of features to cater to traders and investors of all kinds. With 24/7 customer support available in 40 languages, including both Simplified and Traditional Chinese, assistance is always at hand.
The exchange provides access to over 350 cryptocurrencies, allowing you to buy, trade, and hold a diverse range of digital assets.
Furthermore, Binance safeguards user funds through the Secure Asset Fund for Users (SAFU), storing 10% of all trading fees in a secure fund. This provides an added layer of protection against unforeseen events. Additionally, advanced data encryption ensures that your transaction data remains confidential and secure.
Now, the spot trading fees on Binance are 0.1% or less, depending on the user's trading volume or BNB balance. Furthermore, there's a 25% discount when using BNB to pay for fees, making trading even more cost-effective. In fact, Binance has some of the most competitive fees in the industry.
Of course, Binance's offerings extend beyond spot trading to encompass margin trading, staking, futures trading, options trading, trading bots, mining pools, and even an NFT marketplace.
This comprehensive suite of services positions Binance as one of the "best Chinese crypto exchanges" according to many crypto enthusiasts in China, enabling them to unlock the full potential of their digital assets.
As the Chinese crypto community continues to thrive, Binance's influence remains resolute, redefining the possibilities for digital asset enthusiasts in the country and beyond.
2. Kraken – Secure and Transparent
Ranks #2 out of 7 Crypto Exchanges.jpg "Kraken – Secure and Transparent")
- + Secure and reliable
- + Accepts fiat currencies
- + Lots of trading options
- + 24/7 customer support
- + Opt-in staking
- - Relatively high fees
In the world of cryptocurrency exchanges, Kraken shines as a beacon of reliability and innovation for people who want to buy crypto in China. With a staggering quarterly trading volume surpassing $207 billion and a client base exceeding 10 million users, Kraken stands as one of the best crypto exchanges in China.
The platform takes pride in nurturing its users' understanding of the crypto landscape. The Kraken Learn Center serves as a valuable resource hub where beginners and experts alike can delve into all things crypto.
Whether you're new to the game or a seasoned trader, you'll find the tools and insights you need to navigate the complexities of cryptocurrency.
What about customer support? Kraken's support center is where you can find answers to your queries or concerns easily. For those moments when real-time assistance is paramount, Kraken offers 24/7/365 support through live chat, phone, or email.
Kraken also understands that fees play a pivotal role in your trading decisions. While Kraken's fees start at 0.26%, which is a bit high compared to the industry standard, you can lower them by increasing your trading volume. You can even decrease the fees to 0%.
The exchange opens the doors to a multitude of trading possibilities. From spot trading to margin trading, staking to futures trading, and even an NFT marketplace, it caters to the diverse needs of its users. Because of that, Kraken could never be left out of a reliable list of crypto exchanges in China (or anywhere else, for that matter).
Besides, Kraken's commitment to transparency is a cornerstone of its service. Its regularly conducted proof of reserves audits allow clients to verify their asset balances with utmost ease, which is why many investors believe Kraken is the best crypto exchange China residents can access.
Through a streamlined process and diligent oversight by trusted auditors, Kraken ensures that your trading experience transcends mere asset exchange to embody trust and accountability.
In a world where open-source blockchains reign, Kraken harnesses this transparency to provide clients with assurance that their assets are backed by real value.
3. Bitfinex – Automated Multiple Limit Order Creation
Ranks #3 out of 7 Crypto Exchanges
- + More than 170 crypto assets to trade with
- + Supports fiat deposits
- + Advanced trading tools
- + Small fees
- + Highly-improved security features
- - Controversial past
- - Might not be suitable for beginner traders
To residents looking to buy crypto in China, finding the best exchange in China that meets their needs can make all the difference. In this context, Bitfinex stands tall as a major player, offering a comprehensive suite of features and services.
Rooted in the ethos of Bitcoin, a top cryptocurrency in China, their mission revolves around harnessing cutting-edge technology to empower people around the world to transact and connect with effortless freedom.
Recognizing the transformative power of education, Bitfinex takes strides in fostering understanding and inclusivity within the cryptocurrency realm. By investing in educational initiatives worldwide, they advance the comprehension of digital assets while promoting greater financial education.
With a diverse array of over 170 tokens and a daily trading volume surpassing hundreds of millions of dollars, Bitfinex boasts a bustling ecosystem.
Their fee structure is designed to favor users: maker fees clock in at 0.1%, while taker fees at 0.2%. Though, holding Unus Sed LEO tokens unlocks discounts on taker fees.
Now, Bitfinex goes beyond the basics, offering users a plethora of trading options. These include spot trading, P2P trading, margin trading, margin funding, derivatives trading, staking, lending, and borrowing. With so many options, it's easy to understand why Bitfinex stands amongst the best crypto exchanges in China.
Furthermore, Bitfinex offers users the Scaled Orders tool that allows streamlining the process of entering multiple orders. The tool automates the creation of limit orders across a user-defined price range, all while giving traders control over order diversity and distribution.
This tool is the reason why so many advanced traders consider Bitfinex the best crypto exchange China crypto enthusiasts can access.
Bitfinex's paper trading feature also emerges as a boon for traders seeking to test strategies without real funds. This simulated market environment operates through sub-accounts that mirror the functionalities of the master account, providing a safe space for experimentation.
On top of that, the integration of Bitfinex Honey seeks to democratize trading strategy development. Even traders without coding knowledge can create custom order types and automated strategies. This accessibility broadens the horizons of algorithmic trading, making it approachable for all.
Did you know?
All Crypto Exchanges may look similar to you but they're NOT all the same!
4. HashKey Exchange - Hong Kong’s Licensed Crypto Exchange
Ranks #4 out of 7 Crypto Exchanges
- + Fully-compliant with Hong Kong's SFC
- + ISO-certified
- + Crypto and fiat trading
- + Rewards with HSK
- + Corporate trading
- - Deposit required for online KYC
- - Only 20+ crypto supported
- - Only spot trading
HashKey Exchange is a Hong Kong-based cryptocurrency exchange that operates under the larger HashKey Group, a prominent digital asset financial services group. The platform focuses on providing a regulated and secure environment for cryptocurrency trading, targeting both retail and institutional investors.
Though it offers a relatively limited selection of crypto assets, HashKey stands out for its regulatory compliance, a key factor for users seeking a secure and trustworthy exchange. The platform is one of the few exchanges in Hong Kong that is formally regulated.
HashKey is one among a handful of exchanges registered by Hong Kong’s Securities and Futures Commission (SFC) to operate a virtual asset trading platform.
HashKey Exchange provides a variety of features, but the range of services depends on which version of the platform is being accessed. The Hong Kong version supports a fiat-to-crypto exchange and includes HashKey Pro, which caters to institutional clients with advanced trading tools. The global version, however, offers additional features such as futures trading and a coin launchpool, expanding the platform's appeal to a broader range of investors and traders.
In terms of security, HashKey Exchange has earned two ISO certifications: one for Information Security and another for Data Privacy. The platform goes the extra mile to ensure the protection of client funds by holding them in segregated accounts, separate from the platform’s operational funds, and by using institutional-grade custody insurance to safeguard against potential risks.
As a regulated exchange with a strong focus on security, HashKey Exchange is positioned as a trusted option for both individual traders and institutional clients seeking a compliant and reliable platform for cryptocurrency trading
5. CEX.IO – Effortless Learning and User-Friendly Trading
Ranks #5 out of 7 Crypto Exchanges
- + Easy to navigate
- + Secure and regulated
- + Provides earning features
- + Competitive trading fees
- - Lacks advanced trading options
When looking for the best exchange in China, be sure to consider CEX.IO. This platform has cemented its place among the top contenders, opening the door to a realm of possibilities for over 5 million registered users and counting.
With a track record dating back to 2013 and billions of customer deposits, the sheer numbers speak volumes about the trust users have in CEX.IO. However, the significance of these figures extends beyond just that.
Over half a million Bitcoins have been mined through their legacy pool, GHash.IO, showcasing their deep-rooted involvement in the crypto ecosystem. Besides, when it comes to trading fees, CEX.IO keeps it simple and affordable, with rates as low as 0.15% for makers and 0.25% for takers, or even less.
Now, complexity can be a barrier, and CEX.IO understands this well. It offers solutions that eliminate unnecessary steps and complications. Though, its aim is not just simplicity, but an ongoing process of improvement to serve its users better.
For those seeking more control, CEX.IO provides APIs that elevate your trading experience. You can easily gain access to current and historical crypto prices, as well as market data from other exchanges. Besides, automated trading features add an extra layer of convenience.
On top of that, CEX.IO isn't just about trading; it's about learning, too. From blockchain basics to in-depth crypto trading, CEX.IO University empowers users to take control of their crypto future.
Overall, CEX.IO offers spot and margin trading, staking options, loans, and more. Oh, and all those products can be accessed on a mobile app as well. This comprehensive approach ensures that users have everything they need under one roof.
6. OKX – User Interface in Chinese
Ranks #6 out of 7 Crypto Exchanges
- + Strong security
- + 650+ trading pairs
- + Good functionality
- + Low fees
- - Not recommended for newbies
If you're seeking the best crypto exchange in China to fit your needs, OKX might just be the answer. As you dive into the world of crypto trading, earning, and more, OKX stands as a beacon of advanced financial offerings.
With a user-friendly platform accessible in both Traditional and Simplified Chinese, OKX caters to a broad user base, making it a go-to choice for many native Chinese speakers seeking the best exchange in China.
OKX offers a wide range of financial services for crypto enthusiasts. Users can engage in various activities to manage and grow their portfolios effectively.
It lists over 330 cryptocurrencies and offers more than just spot trading, extending its capabilities to futures, margin, and options trading, as well as trading bots, copy trading, staking, loans, and mining pools.
For those interested in decentralized finance (DeFi), OKX provides access to decentralized applications (dApps) such as DeFi solutions and blockchain gaming experiences. You can easily connect to the DeFi world using OKX's Web3 wallet, available through their user-friendly app or browser extension.
Moreover, OKX has an NFT Marketplace where users can create, buy, and sell NFTs, embracing the non-fungible token revolution.
But that's not all! OKX offers opportunities for users to earn crypto through mining pools, collateralized loans, and various other avenues through OKX Earn.
It's important to note that OKX's fee structure varies for regular and VIP users, with maker fees starting at 0.14% and takers at 0.23%. Also, the OKB token plays a significant role in the OKX ecosystem, offering benefits like exclusive discounts and potential savings of up to 40% on trading fees.
Lastly, keep in mind that security is a top priority at OKX. It employs a secure offline and online storage system using cold wallets for offline storage and a semi-offline multi-signature mechanism for hot wallet operations.
Additionally, OKX demonstrates its commitment to security through its Risk Shield initiative, enhancing its ability to protect users' assets from potential crypto security risks, thus creating a secure trading environment.
7. LBank - A Feature-Rich Crypto Exchange
Ranks #7 out of 7 Crypto Exchanges
- + A range of trading tools
- + Fiat buying and selling options
- + NFT marketplace
- - Lack of innovation
- - No US support
LBank is a global cryptocurrency exchange established in 2015, with its headquarters located in Indonesia. The platform serves users across multiple countries and supports over 800 digital assets, including major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), as well as popular meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF). This wide variety allows traders to diversify their portfolios and explore emerging tokens.
In addition, LBank offers a comprehensive range of features suitable for both beginners and experienced traders. Users can access one-click buy options, spot trading, leveraged tokens, futures trading with leverage of up to 125x, and copy trading services.
Additionally, the platform provides earning opportunities through staking and savings products, as well as grid trading tools for automated strategies. With a competitive trading fee of 0.1% for both makers and takers, LBank is recognized as a cost-effective exchange.
LBank is registered in several jurisdictions, including Italy, Canada, the United States, Australia, and Lithuania, ensuring compliance with international regulatory standards.
Security is a top priority at LBank. The exchange utilizes a Merkle-tree proof-of-reserves system to ensure transparency and employs standard security practices such as two-factor authentication (2FA), Know Your Customer (KYC) verification, and cold storage for the majority of funds. A bug bounty program is also in place to identify and mitigate potential security threats.
Combining an extensive selection of cryptocurrencies, diverse trading options, and strong security measures, LBank is a reliable platform for global cryptocurrency traders.
Conclusions
To navigate the intricate landscape of the Chinese cryptocurrency scene, you must select the best exchange in China that aligns with your needs. Though, with numerous notable contenders such as Binance, Kraken, and Coinbase, pinpointing the platform that's best for everyone is not really possible.
Besides, it's common knowledge that the responses to inquiries such as "Is Bitcoin legal in China?" and "Are cryptocurrencies legal inside Chinese borders?" lean towards the negative. Nonetheless, investors persist in finding avenues to interact with their preferred tokens, often resorting to VPNs for assistance.
That said, when picking the best Chinese crypto exchange for you, keep in mind such factors as reputation, security, fees, and available features. Plus, don't forget China's crypto landscape and the potential risks it poses.
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. C. Chen, L. Liu: 'How Effective is China's Cryptocurrency Trading Ban?';
2. P. Ezra, S. Misra, A. Agrawal, et al.: 'Secured Communication Using Virtual Private Network (VPN)'.
About Article's Experts & Analysts
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