PBoC Crypto Rules: What China's Central Bank Really Bans and Allows

When you hear PBoC crypto rules, the regulatory framework set by the People's Bank of China to control cryptocurrency use within its borders. Also known as China's cryptocurrency policy, it's not just about banning coins — it's about replacing them entirely. The PBoC didn’t just crack down on Bitcoin and Ethereum. It built something bigger: a state-controlled digital currency that now powers everyday transactions for over a billion people.

China’s approach is simple: private crypto is a threat to financial control, and the central bank digital currency, the digital yuan, a government-issued digital form of the Chinese renminbi. Also known as e-CNY, it's the backbone of China’s financial future. While Bitcoin miners were forced out of Sichuan and crypto exchanges shut down in Shanghai, the PBoC quietly rolled out the digital yuan in dozens of cities. No blockchain. No decentralization. Just tracking, control, and compliance. Traders who tried to bypass the ban with VPNs found their accounts frozen. Exchanges that didn’t comply vanished overnight.

The PBoC didn’t stop at banning trading. It also cracked down on mining hardware sales, blocked crypto-related ads, and pressured global platforms to cut off Chinese users. Even decentralized finance apps got caught — if a wallet connected to a Chinese IP address, it was flagged. Meanwhile, the digital yuan works with QR codes, mobile apps, and offline payments. No internet? No problem. The government doesn’t need your permission to spend your money — it just needs your phone.

What’s left for crypto in China? Almost nothing — except underground P2P trading, hidden mining rigs, and offshore exchanges that still serve Chinese users. But even those are shrinking. The PBoC’s rules aren’t just about control. They’re about replacing the entire system. And they’re winning.

Below, you’ll find real stories from traders who lost access to their funds, exchanges that got shut down, and the few loopholes still being tested. No hype. No speculation. Just what happened, who got hit, and how China’s digital currency strategy is changing the world — one transaction at a time.