Where Did Bitcoin Trading Start in China?

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Bitcoin trading in China traces its roots back to Beijing, where the country’s first cryptocurrency exchange was launched. On June 10, 2011, the platform Bitcoin China went live, marking the official beginning of organized Bitcoin trading in the nation. Since then, the Chinese crypto market has evolved through distinct phases: early innovation, regulatory crackdowns, and a resilient underground resurgence—followed by renewed interest driven by technological and financial developments.

This article explores the origin, evolution, and current state of Bitcoin trading in China, highlighting key milestones and market dynamics that shaped one of the world’s most influential cryptocurrency ecosystems.

The Birth of Bitcoin Trading in China

The story of Bitcoin in China begins in Beijing, the nation’s political and technological hub. In the early 2010s, global awareness of Bitcoin was still limited, but tech-savvy communities in urban centers like Beijing began experimenting with decentralized digital currencies.

👉 Discover how early crypto pioneers shaped today’s digital economy.

June 10, 2011: A Landmark Date

On June 10, 2011, Bitcoin China (BTCChina) was founded in Beijing by entrepreneur Bobby Lee. It became the first Bitcoin exchange platform in the country, offering users a secure environment to buy, sell, and store Bitcoin. This launch marked the beginning of structured crypto trading in China.

At the time, Bitcoin was largely unknown to the general public. BTCChina played a crucial role in educating early adopters and building trust in blockchain technology. Its success inspired a wave of new platforms, including OKCoin and Huobi, which emerged in the following years and expanded access to cryptocurrency markets across China.

Early Growth and Market Expansion

The early 2010s were a period of rapid growth for Bitcoin trading in China. With minimal regulatory oversight, the market flourished organically.

Key Factors Driving Early Adoption

By 2013, Bitcoin China had become one of the largest exchanges globally by trading volume. The platform's success demonstrated strong domestic interest and laid the foundation for China’s future role in the global crypto ecosystem.

Regulatory Crackdowns and Market Shifts

As Bitcoin gained popularity, Chinese authorities began to take notice. Concerns over financial stability, capital controls, and money laundering prompted regulatory intervention.

2013: First Major Warning

In December 2013, the People’s Bank of China (PBOC) issued a notice prohibiting banks and financial institutions from handling Bitcoin transactions. While this didn’t ban individual ownership, it cut off formal banking support for crypto exchanges.

Despite this restriction, peer-to-peer trading continued to grow. Many users adapted by using third-party payment systems or over-the-counter (OTC) desks to trade Bitcoin.

2017: The Exchange Shutdown

The most significant regulatory blow came in September 2017, when Chinese authorities announced the shutdown of all domestic cryptocurrency exchanges, including giants like Huobi and OKCoin. The government cited risks related to illegal fundraising, fraud, and market manipulation.

This decision forced major platforms to either cease operations or relocate overseas. However, rather than eliminating Bitcoin trading, it drove much of the activity underground or offshore—where Chinese users remained active participants.

👉 See how global traders navigate evolving crypto regulations.

Resilience and Underground Activity

Even after the 2017 ban, China maintained a significant presence in the global Bitcoin economy.

Persistent Demand Among Retail Investors

Despite official restrictions, many Chinese individuals continued to invest in Bitcoin through:

Communities on platforms like WeChat and QQ formed informal trading groups, enabling users to exchange crypto without relying on centralized platforms.

Mining Dominance

While trading moved underground, China solidified its dominance in Bitcoin mining. Thanks to abundant hydroelectric power in provinces like Sichuan and low electricity costs in Xinjiang and Inner Mongolia, China became home to over 70% of global Bitcoin mining activity at its peak.

This mining boom allowed China to indirectly influence network security and transaction validation—despite having no legal exchanges.

Recent Developments and Future Outlook

In recent years, the landscape has shifted again—this time with government-led innovation driving new interest in digital assets.

2020: The Digital Yuan Emerges

In 2020, the People’s Bank of China launched pilot programs for the digital yuan (e-CNY)—a central bank digital currency (CBDC). While distinct from decentralized cryptocurrencies like Bitcoin, the e-CNY signaled China’s commitment to digital finance.

The rollout increased public awareness of blockchain technology and reignited conversations about digital asset regulation.

Mining Ban and Relocation (2021)

In 2021, citing environmental concerns and financial risk, China banned Bitcoin mining nationwide. Most mining operations relocated to countries like Kazakhstan, Russia, and the United States. This significantly reduced China’s hash rate share but did not eliminate domestic interest.

Today, while direct trading remains restricted, many Chinese citizens access global exchanges via virtual private networks (VPNs) or international accounts.

Frequently Asked Questions (FAQ)

Where did Bitcoin trading first start in China?

Bitcoin trading officially began in Beijing with the launch of Bitcoin China on June 10, 2011. It was the country’s first cryptocurrency exchange.

Is Bitcoin trading legal in China?

No. Since 2017, all cryptocurrency exchanges operating within China have been shut down, and financial institutions are prohibited from handling crypto transactions. However, individuals may still hold or trade Bitcoin through offshore platforms.

Why did China ban Bitcoin exchanges?

China banned domestic exchanges due to concerns about financial stability, capital flight, money laundering, and investor protection. The government wanted to maintain control over monetary policy and prevent speculative bubbles.

Is China still involved in Bitcoin?

Yes. Although trading is restricted and mining is banned domestically, China remains influential in the Bitcoin ecosystem. Many developers, investors, and hardware manufacturers (like Bitmain) are based in China. Additionally, Chinese users continue to participate globally through international platforms.

What is the difference between Bitcoin and China’s digital yuan?

Bitcoin is a decentralized, permissionless cryptocurrency not controlled by any government. The digital yuan (e-CNY) is a centralized, state-issued digital currency controlled by the People’s Bank of China. They serve different purposes—Bitcoin as a store of value; e-CNY as a digital version of cash for everyday use.

Can Chinese citizens use foreign crypto exchanges?

While not explicitly illegal for individuals to use foreign exchanges, doing so exists in a legal gray area. Accessing these platforms often requires bypassing internet restrictions, which carries potential risks.

👉 Learn how compliant platforms are shaping the future of crypto trading.

Core Keywords

The journey of Bitcoin in China reflects a complex interplay between innovation, regulation, and resilience. From its humble beginnings in a Beijing startup office to becoming a focal point of global crypto debates, China’s role in the Bitcoin narrative remains pivotal—even under strict controls.

As blockchain technology continues to evolve and digital finance reshapes economies worldwide, understanding China’s past and present relationship with Bitcoin offers valuable insights into the future of money.