A Chinese court has ruled that cryptocurrency exchange BKEX was operating as an illegal gambling platform, reinforcing China’s ongoing crackdown on crypto-related activities. The ruling underscores the country’s strict stance against digital asset trading, which has been largely banned under China’s 2021 crypto prohibition policies. Authorities argued that BKEX’s operations facilitated illicit financial activities, including money laundering and unauthorized financial transactions.
The decision aligns with China’s broader regulatory approach, where officials have repeatedly warned against the risks of unregulated crypto trading. BKEX, which suspended withdrawals in 2023, had been under investigation for its alleged role in funneling funds through gambling-related transactions. The court’s ruling effectively categorizes certain crypto exchanges as facilitators of illegal activity, adding legal pressure on platforms still catering to Chinese users.
Despite China’s stringent policies, reports indicate that underground crypto trading remains active within the country. Traders often use peer-to-peer (P2P) networks and offshore platforms to bypass restrictions, prompting authorities to tighten enforcement. The BKEX case serves as a warning to both domestic and international exchanges operating in grey areas of Chinese financial law.
As China continues its regulatory clampdown, the ruling against BKEX highlights the increasing legal risks for crypto firms in the region. While Beijing has signaled interest in blockchain technology development, its firm stance against crypto trading suggests that regulatory restrictions are unlikely to ease in the near future.
