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Everything is illegal As things stand at the moment, it is not legal in China to hold an ICO or to trade cryptocurrency at an exchange. Chinese Bitcoin mining companies, long responsible for producing the vast majority of the worlds bitcoins, have been told to leave the country.
This year the national firewall was extended to stop Chinese citizens from using overseas cryptocurrency exchanges, and the central bank ordered financial institutions to stop providing funding to any activity related to cryptocurrency.
As of now it is legal to hold cryptocurrency, but making any transactions with it is not. This policy direction has undoubtedly had its effect.