Cryptocurrency, Legality, Buying Cryptocurrency, Fund Transfer, Knowledge of the Crypto World
When it comes to cryptocurrency, many people are both curious and afraid of pitfalls. Don't worry, this article clarifies the legality, who holds it, how to buy, how to transfer funds, and essential knowledge in the crypto world.
- Legality of Cryptocurrency, Varies by Region
Let's first discuss the legality, which is a major concern for everyone. In China, virtual currencies themselves are not illegal, but they cannot circulate as currency in the market, and financial institutions cannot provide related products or services. However, the situation varies greatly between countries and regions; some countries completely prohibit it, while others allow it but under regulation, and trading platforms must have licenses. For example, Hong Kong is relatively compliant and open regarding crypto assets, with licensed virtual asset trading platforms, which provides a compliant basis for subsequent operations in Hong Kong.
OKX APP, one of the top three exchanges globally, offers a 20% discount on trading fees for registration!
OKX (Overseas) registration link: https://www.okx.com/join/97763692
OKX/Binance/Huobi - Registration/Download: http://18907.cc
Binance domestic registration: https://www.binance.com/zh-CN/join?ref=565010509
Summary: Cryptocurrency trading is currently: prohibited but not illegal in China; supported in most countries like the US, Europe, Japan, Russia, and India; and legal and compliant in Hong Kong.
How to trade cryptocurrency legally and compliantly in China? Use an overseas bank card in Hong Kong.
-
Who are the Top Ten Holders of Bitcoin Globally?
As the most well-known cryptocurrency, Bitcoin's top ten holders attract significant attention. Satoshi Nakamoto holds about 1.1 million coins, valued at over $10 billion; institutions like BlackRock and Binance also hold large amounts of Bitcoin. Among these holders are mysterious individuals, large financial institutions, and well-known crypto platforms, reflecting the recognition of Bitcoin among different entities. -
What Exactly is Bitcoin?
Bitcoin can be described as "internet cash" (insert first image); it is like the cash in your wallet but exists only on the internet, with no physical coins or paper bills.
Compared to payment methods like certain e-commerce platforms, when transferring money, the funds are still circulating within the banking system, and the platform merely acts as a messenger; whereas Bitcoin transfers are "peer-to-peer," sent directly to the other party without any banks or companies intervening, just like handing over cash in person.
Moreover, Bitcoin has no "owner's" ledger. Traditional currencies are managed by banks and governments, and your account balance is determined by them; however, Bitcoin's ledger (the blockchain) can be viewed by anyone worldwide (but without seeing individual accounts), maintained by thousands of computers globally, with no central server. Want to alter the ledger? You'd have to hack over 51% of the world's computers simultaneously, which is nearly impossible! This ledger updates every ten minutes, and everyone has the exact same version.
- Want to Buy Cryptocurrency? Here are the Options
(1) Common Purchasing Platforms
There are many cryptocurrency trading platforms now, such as Binance, Bybit, and others, where you can buy and sell common cryptocurrencies like Bitcoin and Ethereum, but you should choose compliant platforms to avoid risks.
Binance
The Binance trading platform (official registration, official download) was created by a group of digital asset enthusiasts focusing on blockchain assets. Headquartered in Tokyo, Japan, it is currently one of the most influential platforms among Chinese exchanges. Binance is a fusion of "Binary" and "Finance," meaning the integration of digital technology and finance.
Binance is a global cryptocurrency exchange serving 180 countries and regions, including North America, Europe, Taiwan, the Middle East, Hong Kong, and Malaysia, offering over 600 cryptocurrencies and boasting 270 million registered users worldwide. Since 2018, Binance has been regarded as the largest cryptocurrency exchange in the world by trading volume, with a 24-hour trading volume reaching $100 billion.
After six years of development, Binance has become a benchmark in the cryptocurrency industry, gaining popularity among global cryptocurrency investors due to its rich trading offerings, low trading fees, high liquidity, stringent security standards, and excellent Chinese customer service!
Currently, Binance has established joint ventures with leading global partners, setting up cryptocurrency trading platforms that support fiat currency deposits in Japan, France, Italy, Spain, Dubai, the US, New Zealand, and more, obtaining local regulatory licenses. Other countries and regions (including Taiwan/Hong Kong) can open accounts and trade on Binance's international site, with quick registration in five minutes and optimal trading fees across the network.
Binance was founded by Canadian-Chinese engineer Zhao Changpeng, who conducted an ICO in 2017 (issuing virtual currency to raise initial funds), with the token called Binance Coin (BNB).
Binance is a global cryptocurrency exchange serving 180 countries and regions, including North America, Europe, Taiwan, the Middle East, Hong Kong, and Malaysia, offering over 600 cryptocurrencies and boasting 120 million registered users worldwide. Since 2018, Binance has been regarded as the largest cryptocurrency exchange in the world by trading volume, with a 24-hour trading volume reaching $76 billion.
After six years of development, Binance has become a benchmark in the cryptocurrency industry, gaining popularity among global cryptocurrency investors due to its rich trading offerings, low trading fees, high liquidity, stringent security standards, and excellent Chinese customer service!
Binance (official registration, official download) is a global digital asset trading platform founded by Xu Mingxing in 2017, formerly known as Binance Ex. It offers various services, including cryptocurrency trading, derivatives trading (such as futures and options), as well as decentralized finance (DeFi) and Web3 ecosystem services. The platform is known for its rich trading products and technical strength, providing secure and efficient digital asset trading and value-added services to global users.
The Binance platform offers OTC fiat trading, allowing users to purchase mainstream cryptocurrencies like Bitcoin and Ethereum with RMB. Additionally, Binance has launched Binance B tokens, which provide trading fee discounts and other privileges for holders. The trading experience on Binance is relatively good, suitable for all types of investors, especially those needing futures and leveraged trading.
If you haven't registered on the Binance exchange yet, you can use the registration link and app download address below, along with video tutorials, to register yourself.
Huobi (Huobi/HTX)
Huobi Exchange (official registration, official download) is a digital asset trading platform established in 2013, now renamed HTX (Chinese name: 火必). It offers spot and derivatives trading services for various cryptocurrencies, including Bitcoin and Ethereum, with operations spanning multiple countries and regions worldwide.
Asset Scale: $4.52 billion (asset growth from ecosystem expansion)
Number of Trades: 780 (27 new, closely following Binance)
24-hour Transaction Volume: $31.075 billion (returning to peak, globally leading)
Highlights: Since its establishment in 2013, Huobi has weathered storms and remains standing. After setting a record of 260,000 BTC in daily trading volume in 2014, Huobi underwent a comprehensive upgrade in 2025, supporting not only mainstream cryptocurrencies but also launching NFT and metaverse-related services, becoming a "veteran powerhouse" in the hearts of Chinese users.
Bitget
Bitget (click to download, click to register) is a leading cryptocurrency exchange that provides users with a seamless and secure trading experience. As a centralized exchange, Bitget has high liquidity, enabling fast and efficient trading of various digital assets.
One of Bitget's standout features is its extensive support for cryptocurrencies. Users can trade popular currencies like Bitcoin and Ethereum with various altcoins, providing ample opportunities for portfolio diversification. This wide selection caters to both experienced traders and newcomers to the cryptocurrency market. The platform is known for its user-friendly interface, simplifying the trading process. Whether managing accounts, executing trades, or exploring advanced features, users will find navigation intuitive and straightforward. The focus on usability ensures a smooth experience for all users.
In addition to trading, Bitget offers various earning opportunities. The platform supports staking, allowing users to earn rewards by locking tokens. Bitget also features a copy trading function, enabling users to mirror the trades of successful investors and providing futures trading for those looking to capitalize on their investments. Security is a top priority for Bitget, with robust measures such as multi-signature wallets and advanced encryption to protect user assets. Additionally, 24/7 customer support is available to assist with any issues, ensuring a reliable and secure trading environment.
Gate.io Sesame Open Door
On July 22, 2020, Gate.io underwent a comprehensive brand upgrade, officially adopting the Chinese name "芝麻开门."
Gate.io Sesame Open Door International Site (official registration, official download) is a global blockchain asset international site with an attitude. Since its establishment in 2013, it has provided trading and investment services for nearly 500 high-quality blockchain asset categories to millions of users from over 224 countries worldwide. Gate.io is committed to being a trustworthy, secure, stable, and reputable blockchain asset international site, providing users with safe, convenient, and fair blockchain asset trading services while fully safeguarding users' trading information and asset security.
Gate.io is operated by Gate Technology Inc., serving globally, with independent trading and operation centers in Canada, South Korea, Japan, Hong Kong, and other countries and regions.
Gate.io features super defense SSL links, offline Bitcoin wallet technology, instant blockchain asset access functionality, multi-currency address sharing technology, and multi-layer security verification protection, while also offering lower trading and withdrawal fees for blockchain assets.
Bybit
Ranking of No KYC Cryptocurrency Exchanges
Bybit is a popular cryptocurrency exchange founded in 2018 and headquartered in Singapore. It is known for its user-friendly interface and a variety of trading options, especially suitable for privacy-conscious users. Many consider it one of the best no KYC exchanges, as it allows users to withdraw without providing personal information like ID or address, although there are some limitations.
Currently, if you do not undergo KYC verification, you can withdraw up to $20,000 worth of cryptocurrency daily and up to $100,000 monthly. However, the situation has changed over time. Previously, Bybit allowed trading and deposits without KYC, but starting in 2025, they tightened the rules. Now, to trade or deposit cryptocurrency, you need to complete KYC verification, which requires submitting identification. For withdrawals, the daily limit of $20,000 is still relatively suitable for small to medium traders who wish to remain anonymous.
The exchange primarily focuses on derivatives trading, such as futures and perpetual contracts, with leverage up to 100 times. It also offers spot trading and staking options for passive income, but these options typically require KYC verification for full access. Bybit ensures the safety of user funds through cold storage and two-factor authentication, providing security even for non-KYC users.
Advantages
Offers up to 100x leverage for derivatives trading
No KYC verification required, with a daily withdrawal limit of $20,000
Fast platform with over 100,000 transactions per second
Ensures fund security through cold storage and two-factor authentication
Simple mobile app and website for ease of use
Disadvantages
Trading and deposits require KYC, limiting privacy options
Bybit recently suffered a $1.4 billion hack
Strict regulations prevent use in the US
(2) Buying through Hong Kong Brokers
Hong Kong is compliant and open to crypto assets, and you can also purchase cryptocurrencies through brokers in Hong Kong. When buying from a Hong Kong broker, you need to complete identity verification and other processes, then transfer funds to the broker's account to trade cryptocurrencies, which offers more assurance of compliance.
(3) Ways to Receive Tokens
Receiving tokens can be done mainly through "off-chain" and "on-chain" methods (insert second image). "Off-chain" refers to receiving tokens through trading platforms like Binance, obtaining assets from the trading platform's spot and fund accounts; "on-chain" refers to receiving tokens through wallet addresses, using wallet addresses or QR codes to receive assets.
- Crypto Jargon You Should Know
There are many exclusive terms in the crypto world that you should understand:
USDT: Known as Tether or U Coin in China, it is a stablecoin launched by Tether, with 1 USDT = 1 USD, allowing users to exchange Tether for USD at a 1:1 ratio anytime, often used to buy virtual currencies first before purchasing Bitcoin and others.
Bitcoin (BTC): The first cryptocurrency in the world, born in January 2009, also referred to as "big cake" in the crypto community.
Altcoin: Any cryptocurrency other than Bitcoin is called an altcoin, with Ethereum (ETH) being the largest altcoin by market cap, also referred to as "second cake."
Web3 Wallet: A cryptocurrency wallet, similar to a WeChat wallet.
Contract: Refers to virtual currency futures.
Gas Fee: Transaction commission paid to miners.
Miner: The unit responsible for bookkeeping; cryptocurrencies have no central server, and each miner keeps the ledger.
On-chain: Transactions conducted through the blockchain, as opposed to "off-chain," which refers to transactions through exchanges; on-chain is like cash transactions, while off-chain is like WeChat transfers.
C2C Trading: A method of withdrawing U Coin through the platform.
OTC Trading: Over-the-counter trading refers to trading activities outside of exchanges, where buyers and sellers negotiate to reach a trading agreement. Trading forms include online platforms, offline stores, and ATMs. Most OTC merchants' offline stores and ATMs generally do not require KYC, and transactions can be completed in minutes, but large transactions are not allowed.
MSTR: MicroStrategy, a publicly traded company that holds hundreds of thousands of Bitcoins, can be understood as a Bitcoin concept stock; when Bitcoin rises, it also rises.
Chain Scanning: Similar to shopping, it refers to finding newly released cryptocurrencies with high future value.
Smart Contract: An automatically executed contract.
Public Key & Private Key: A pair of keys that protect assets, akin to a WeChat payment QR code and payment password.
Address: The account address for sending and receiving currency, similar to a WeChat account.
Cold Wallet & Hot Wallet: A cold wallet is when the private key is written down, offline, and absolutely secure, but it needs to be transferred back to the exchange for transactions, which is cumbersome; a hot wallet is when the private key is stored in a cryptocurrency wallet like Coinbase Wallet, making transactions convenient.
Mnemonic Phrase: Keywords for wallet recovery.
Faucet: A service that provides a small amount of digital currency for free.
- Cross-Border Fund Transfers, How to Operate Between Hong Kong and Mainland
(1) Transferring Money Abroad
To avoid suspected money laundering operations and prevent scrutiny or card freezing, keep these points in mind:
Choose large platforms like Binance or others for OTC trading.
Opt for OTC platforms that support T+1/T+2 withdrawal strategies; although you cannot withdraw immediately after selling coins, it reduces the risk of being suspected of money laundering.
Avoid using stablecoins like USDT for OTC trading; instead, use mainstream coins like BTC or ETH.
The bank card used for OTC trading should be a separate card that you usually do not use, distinct from your salary card, so that even if it gets frozen, it does not affect other funds, making it easier to clarify the flow of funds during investigations.
Preferably use local banks for OTC trading, such as local city commercial banks or rural commercial banks.
Avoid frequent transactions with fixed merchants.
Find reliable OTC merchants for trading, and try to take large orders from major merchants and market makers, minimizing hanging orders.
Reduce the frequency of withdrawals and increase the cash amount.
After OTC trading, do not transfer to your other bank cards to avoid contaminating other funds, which complicates investigations. If you need to withdraw urgently, you can use ATMs or spend online.
(2) Transferring Money Domestically (Between Hong Kong and Mainland)
There are many compliant ways to transfer money from Hong Kong to Mainland China:
In Hong Kong, there are no restrictions on exchanging HKD or USD for offshore RMB. Applying for a Hong Kong credit card to pre-deposit offshore RMB for consumption also has no limit. By binding a Hong Kong UnionPay credit card to Mainland China's Alipay and WeChat, you can scan any QR code for payment (including those that only allow debit cards for Mainland cards, you can also swipe with a Hong Kong UnionPay credit card), and by creating a payment code, you can swipe the pre-deposited funds from the Hong Kong credit card without loss.
Use China Merchants Yonglong to exchange for RMB, then withdraw cash from the Bank of China ATM in Mainland China, with a limit of 10,000 RMB per transaction, a fee of 25, and a daily withdrawal limit equivalent to 20,000 HKD, which means you can withdraw 18,000 RMB daily without using foreign exchange quotas.
Buy USDT and swipe with a U card, such as Bybit.
Manually transport cash from Hong Kong to Shenzhen, making several trips.
After placing an order, leave a message for the merchant: Please pay with real-name verification; I will confirm immediately upon receipt of the funds. After the funds arrive, make sure to check the details to see if they match the payer on the order. If it is not a real-name payment, even if the money arrives, return it without listening to any explanations, such as exceeding card limits or using a family member's card.
The receiving card should not be one that has been unused for a long time or has a zero balance, as suddenly receiving a large amount can easily trigger risk control. Each receiving card can maintain a balance of one or two hundred, binding WeChat Pay, and conducting some normal consumption regularly.
- If Your Card is Frozen, How to Explain and Prove?
If your bank card is frozen, first, don't panic. Prepare relevant proof of the source of funds, such as transaction records from cryptocurrency trading platforms, buying and selling records, identity verification information, etc., to explain to the bank that the funds were obtained through compliant channels and that there are no illegal trading activities. If the freeze is due to cryptocurrency trading, you need to prove the compliance of the transactions, such as trading on a licensed platform, etc.
Finally
Regarding cryptocurrency, from legality to practical operations, there are many details worth exploring. If you want to learn more about cryptocurrency or have specific operational questions, remember to follow our public account, as we will continue to share practical content!