Crypto in China

🔴 Dialogue: "Crypto in China? Don't even try."

Student: So, can I invest in Chinese stocks using crypto?

Coach: Short answer? No. Long answer? Still no — and probably never.

Student (laughs):What’s the problem?

Coach: In 2021, China’s central bank banned all crypto transactions. Totally illegal — no trading, no payments, no exchanges.

Student: Even if I use USDT or something stable?

Coach: Nope. Even stablecoins are considered part of the “crypto ban”. You can’t use Bitcoin, Ethereum, or even Tether to buy stocks in Shanghai or Shenzhen. The system only works with Chinese yuan.

Student: Can Chinese investors find a way around that?

Coach: Well… officially — no. But unofficially? There’s a grey market. Investors use OTC dealers, buy crypto with Alipay or WeChat Pay, then transfer funds abroad.

Student: Is that legal?

Coach: Not really. China has strict capital controls — you're not allowed to send more than $50,000 per year out of the country without government approval.

Student: So they break the rules?

Coach: Some do. Reuters even published a story about a Shanghai investor who moved 1 million yuan into Bitcoin and made 45% in a year — while local stocks were falling.

Student: Wow. But that’s risky.

Coach: Exactly. One mistake — and you could face fines or worse. In China, crypto ≠ finance. Full stop.

Student: But what about Hong Kong?

Coach: Ah, clever question. Hong Kong is a special case. Since 2023, they’ve started licensing crypto exchanges. Retail investors can trade Bitcoin or Ethereum — but still can’t buy stocks with it.

Student: So crypto investing is possible, but not for stocks?

Coach: Bingo. In China, crypto’s a legal ghost. In Hong Kong — it's legal but still disconnected from the stock market.

Student: So... can I say China is crypto-hostile?

Coach: You may. But say it quietly, or your WeChat might disappear. 😏

Quick recap:

• ✅ Crypto = illegal in mainland China

• 🟡 OTC workarounds = risky & unofficial

• 🟢 Hong Kong = crypto-friendly (but still separate from stocks)