Can Bitcoin be bought and sold in China?

Bitcoin can be bought and sold in China, but it needs to be done through over-the-counter (OTC) transactions, and there are counterparty risks, money laundering risks, price fluctuation risks and legal risks. Legal and compliant purchases and sales of Bitcoin should be conducted through compliant overseas trading platforms, comply with regulatory regulations, and conduct risk assessments.

Can domestic Bitcoin be bought and sold?

Answer: Yes, but there are conditions.

Details:

In September 2021, the People's Bank of China and other ten ministries and commissions jointly issued the "Notice on Further Preventing and Dealing with the Risks of Speculation in Virtual Currency Transactions", clarifying Financial institutions and payment institutions are prohibited from providing services for virtual currency-related businesses. Therefore, domestic mainstream financial institutions and payment platforms have stopped Bitcoin buying and selling services.

However, over-the-counter (OTC) trading of Bitcoin between individuals is still allowed. OTC transactions refer to direct sales and purchases between individuals, without going through any trading platform or institution. This type of trading is not officially regulated, but carries higher risks.

Risks of OTC Bitcoin Trading:

• Counterparty Risk: How to ensure the reliability and honesty of counterparties?
• Money Laundering Risk: The anonymity of Bitcoin may be used for money laundering activities.
• Price Fluctuation Risk: The price of Bitcoin fluctuates violently, which may lead to losses.
• Legal risk: OTC trading is not regulated, and if a dispute occurs, it is difficult to hold accountable.

Suggestions for legal and compliant buying and selling of Bitcoin:

• Can only be bought and sold through compliant overseas trading platforms.
• Choose a reputable trading platform and understand its risk control measures.
• Comply with domestic regulatory regulations and do not participate in illegal activities such as money laundering.
• Do a good job of risk assessment and invest prudently.

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