PBOC Exchange Ban: How China’s Crypto Crackdown Changed Global Markets

When the PBOC exchange ban, the 2021 directive by China’s People’s Bank of China that outlawed domestic cryptocurrency trading and mining operations. Also known as China’s crypto trading ban, it didn’t just close exchanges—it rerouted the entire flow of Bitcoin and Ethereum across the globe. Before the ban, China handled over 70% of Bitcoin mining and nearly half of all crypto trading volume. Afterward, that activity didn’t disappear. It moved.

The ban targeted centralized exchanges, platforms like Huobi, OKX, and Binance.cn that processed trades in renminbi and served Chinese users directly. But it didn’t stop people from trading. Instead, it pushed millions into peer-to-peer (P2P) networks, decentralized, cash-based systems where users trade crypto directly using WeChat, Alipay, or even in-person meetups. These networks became the new underground exchanges, often using stablecoins like USDT to bypass capital controls. Meanwhile, mining rigs that once lit up Inner Mongolia and Sichuan got shipped to Kazakhstan, the U.S., and even Russia—countries that didn’t have the same regulatory grip.

What’s often missed is how this ban changed the behavior of everyday users. In China, holding crypto wasn’t illegal—only trading through local platforms was. So people kept their Bitcoin, bought it on P2P, and held it in cold wallets. The result? China still has one of the largest crypto holder populations in the world, even after the ban. And the PBOC’s move didn’t kill crypto—it forced innovation. Decentralized protocols, cross-border remittances using stablecoins, and non-custodial wallets saw massive growth as alternatives.

The ripple effects are still visible today. Exchanges that survived moved their headquarters offshore. Mining hardware manufacturers pivoted to selling to countries with low electricity costs. And regulators in the U.S., EU, and Southeast Asia watched closely, using China’s move as a warning—or a blueprint. This collection of articles dives into how the PBOC exchange ban triggered chain reactions: from Russia’s crypto adoption under sanctions, to Egypt’s underground crypto economy, to how Kazakhstan’s mining rules evolved after losing Chinese operators. You’ll find real cases, not theories. No fluff. Just what happened, who it affected, and how the world adapted.