This question has been asked too many times, so let's clarify the situation today. Important note: legal matters are complex, and this article is for informational reference only, not legal advice. To learn about the Binance platform itself, register an account to experience it, and the APP is available for download as well.
Current Policy Background
In September 2021, multiple departments jointly issued a notice stating: virtual currency-related business activities are illegal financial activities; overseas exchanges providing services to domestic residents via the internet is also illegal; participating in virtual currency investment carries legal risks.
This means operating crypto exchanges within China is not permitted, and Binance does not conduct business within China.
Personal Holding and Trading
Policies primarily target platform operators. For individuals: holding crypto is not explicitly prohibited by law and courts have recognized it as virtual property; personal P2P trading is a gray area; however, large-volume, frequent trading, or facilitating others' trading may carry legal risks, especially if money laundering is involved.
Binance's Response
Binance stopped new registrations for Chinese users in 2021, cleared existing Chinese users, and no longer actively promotes to the Chinese market.
Tax Issues
Crypto trading profits should theoretically be reported and taxed under personal income tax regulations. Keep all trading records for potential future tax reporting needs.
Legal Risk Reminders
Chinese users should understand: policies may change anytime; platform issues may be hard to resolve through domestic legal channels; bank cards used for crypto-related transactions may be frozen; watch out for scams claiming to offer "safe trading channels."
Global Comparison
The US has legal but strictly regulated crypto; Japan has a comprehensive regulatory framework; Singapore takes an open approach; South Korea is legal with strict KYC; India is legal but taxes heavily. Globally, outright crypto bans are becoming fewer — most countries choose "regulate, not ban."
A Rational View
Crypto regulations are still evolving worldwide. For Chinese users: stay updated on latest policies, fully understand potential legal risks if participating, don't invest beyond your capacity, keep all trading records, and consult legal professionals if you have questions.