As of June 1, 2025, it is illegal to own, trade, or transfer Bitcoin or any other cryptocurrency from China. Not just difficult. Not just monitored. Not just discouraged. Illegal. The People’s Bank of China shut down every legal pathway for Chinese residents to hold or send crypto overseas. This isn’t a gray area. There’s no loophole. No workaround that won’t put you at serious risk.

If you’re in China and trying to move Bitcoin abroad, you’re not navigating a complex financial system-you’re breaking the law. The government doesn’t just block transactions. It seizes assets. It tracks wallets. It punishes people. And it’s not just targeting big traders. Ordinary people who bought Bitcoin years ago, kept it in a wallet, or sent a small amount to a friend overseas are being caught.

What Changed in June 2025?

Before June 2025, China had banned crypto exchanges, mining, and trading platforms. But individuals could still hold Bitcoin in personal wallets. That changed with the new rule: all ownership of cryptocurrency by Chinese citizens is illegal. It doesn’t matter if you bought it in 2017, 2021, or last week. If you have Bitcoin in a wallet tied to your identity, it’s now considered an illegal asset.

The Ministry of Public Security started seizing wallets linked to known personal IDs. Banks were ordered to freeze any account that showed even a single transaction with a crypto address. Payment apps like WeChat Pay and Alipay now automatically block any outgoing transfer that matches known crypto patterns-even if it’s labeled as "gift" or "loan."

Overseas exchanges like Binance, Coinbase, and Kraken are legally barred from serving Chinese residents. If you log in from a Chinese IP address, your account gets locked. If you try to withdraw Bitcoin to an overseas wallet, the transaction gets flagged and reported to authorities.

How They Track You

People think Bitcoin is anonymous. That’s true in theory. But in China, anonymity doesn’t exist. Authorities combine blockchain analysis with real-world data:

• They match wallet addresses to phone numbers, ID cards, and bank accounts you’ve used before.
• They monitor traffic through domestic internet gateways-any connection to a crypto website or app triggers an alert.
• They use AI to detect patterns: sending 0.01 BTC to a friend, then receiving 5,000 RMB in cash from them the next day? That’s money laundering under Chinese law.
• They’ve trained local police to recognize crypto-related slang. Phrases like "send to cold wallet," "HODL," or "P2P trade" are now flagged in chat logs.

There are no secret tools. No untraceable methods. Even using Tor or a VPN won’t help. The government doesn’t need to break into your wallet. They just need to prove you had Bitcoin and tried to move it. That’s enough for asset seizure and criminal charges.

What Happens If You Get Caught?

The penalties aren’t fines. They’re not warnings. They’re criminal.

• First offense: Asset seizure. Your Bitcoin is confiscated. Your bank account is frozen for 12 months.
• Second offense: Criminal investigation. You could face up to 3 years in prison under anti-money laundering laws.
• Businesses or influencers promoting crypto transfers: Fines up to 5 million RMB ($700,000 USD) and permanent bans from financial services.

There are documented cases. In Shanghai, a 34-year-old engineer tried to send 2.3 BTC to a wallet in Singapore. He used a friend’s overseas account to receive it. Within 48 hours, police showed up at his door. He lost all his crypto. His savings were frozen. He was charged with "illegal financial activity." He’s still waiting for trial.

What About the Digital Yuan (e-CNY)?

China isn’t banning digital money. It’s just controlling it. The digital yuan is the government’s answer to Bitcoin. It’s not decentralized. It’s not anonymous. It’s programmable.

The e-CNY can be set to expire after 30 days. It can be restricted to only spend in certain stores. It can be blocked from going overseas. The government controls every transaction. There’s no way to move it abroad without approval.

Some people think, "Maybe I can convert Bitcoin to e-CNY and then send it?" That’s impossible. You can’t convert Bitcoin to e-CNY. Not legally. Not even through licensed channels. The system doesn’t allow it. The government wants to replace crypto-not merge with it.

What About Hong Kong?

Hong Kong allows crypto trading. But if you live in mainland China, you can’t legally use Hong Kong exchanges. Capital controls are still in place. Sending money from mainland to Hong Kong for crypto trading is treated as an illegal outbound transfer. Even if you fly to Hong Kong, open an account, and buy Bitcoin, bringing it back to mainland China is still illegal.

Some try to use relatives in Hong Kong. They send RMB to a family member, who buys Bitcoin, then sends the crypto back. That’s a direct violation. Authorities monitor cross-border fund flows. Any unusual pattern-like a Hong Kong account suddenly receiving RMB from mainland, then buying Bitcoin-triggers an automatic review.

Why Does China Do This?

It’s not about Bitcoin. It’s about control.

The Chinese government sees decentralized money as a threat to the renminbi. If people start using Bitcoin to pay for goods, send money overseas, or store wealth, it weakens the state’s grip on the economy. Dollar stablecoins like USDT are seen as especially dangerous-they let people bypass capital controls entirely.

China’s solution? Build its own digital currency. The e-CNY lets the state track every transaction, limit spending, and stop money from leaving the country. It’s not about innovation. It’s about control.

Is There Any Legal Way?

No.

There is no legal way to move Bitcoin out of China in 2026. Not through banks. Not through exchanges. Not through P2P. Not through gifts. Not through family. Not through hardware wallets. Not through VPNs. Not through offshore accounts.

Any service claiming to help you transfer crypto from China is either a scam or operating illegally. They’ll take your money, disappear, or turn you in to authorities.

What Should You Do?

If you’re in China and own Bitcoin:

• Don’t try to move it. The risk far outweighs any potential reward.
• Don’t talk about it. Don’t post about it. Don’t ask others for advice.
• Don’t use it to pay for anything. Even online.
• Don’t convert it to e-CNY. That’s not possible.

If you’re outside China and someone asks you to receive Bitcoin from a person in China:

• Don’t do it. You could be charged with aiding illegal financial activity.
• Report it to authorities if you suspect fraud.

The safest choice is to do nothing. Hold your Bitcoin. Don’t touch it. Don’t move it. Don’t talk about it. Wait for policy changes. But don’t expect them soon.

What’s Next?

Some experts think China might one day allow licensed crypto trading-maybe in special zones like Hainan or Shanghai. But that’s speculation. No official policy has been announced. No draft law has been leaked. The June 2025 ban is still fully active.

The government’s focus is on the digital yuan. Until e-CNY is fully rolled out nationwide, crypto remains banned. And even if crypto is allowed again in the future, it will likely be under strict state control-with no cross-border freedom.

For now, the message is clear: Bitcoin doesn’t exist in China. And trying to move it out is the fastest way to lose it-and possibly your freedom.