First, break down the U card into bank card and crypto services
"U card" is not a unified product name under mainland law. If a product requires users to deposit stablecoins and then convert them into fiat currency for spending, the analysis cannot stop at which overseas bank issues the card; it must also examine who provides users with deposit, conversion, asset custody and settlement. The fact that a service is lawful overseas does not mean it may be offered to mainland entities, nor does it mean a mainland team may promote it on that basis.
The notice currently in force in 2026 should be used, not merely older documents cited
The notice issued on February 6, 2026 as Yin Fa [2026] No. 42 expressly repeals Yin Fa [2021] No. 237 at the same time. The new notice continues to prohibit relevant virtual currency business within the mainland and makes clear that overseas entities and individuals may not, in any form, unlawfully provide virtual currency-related services to mainland entities. For U card schemes involving relevant activities, the new notice should be applied in light of the actual service content; an admission conclusion cannot be reached solely on the basis of an overseas company or an overseas card number.
The new notice also addresses internet commercial display, marketing and promotion, paid traffic diversion, and liability for continuing to assist where one knows or should know that an overseas entity is unlawfully providing relevant services within the mainland. Accordingly, short-video promotion, community distribution, referral commissions and mainland customer service assisting with account opening should all be brought within review, rather than merely checking where the website server is located.
Do not conflate three different sets of facts
Suppose a client who meets the conditions of an overseas product and has long lived overseas uses an existing bank card while traveling. That is a different scenario from a project specifically promoting to mainland residents that "topping up USDT enables card spending." The latter involves active customer acquisition and a complete crypto service, and the former common cross-border card spending scenario cannot be used as a lawful basis for it.
Likewise, merely discussing the application for or use of an overseas fiat currency bank card cannot, without analysis, be equated with operating a crypto business. Actual residence, service recipients, transaction paths and marketing content need to be verified; nationality, an overseas mobile number or a single mailing address cannot alone determine the entire conclusion. This article also does not on that basis conclude that all mainland residents' use of overseas cards is unlawful.
Establish clear service boundaries before marketing begins
It is advisable first to organize the product functions, mainland-affiliated personnel and all customer acquisition channels, and to identify whether there are restricted services and fund arrangements directed at mainland entities. Before permission is confirmed, advertisements should not be placed or agents recruited first in reliance on regional disclaimers in the terms as a remedy. For projects that genuinely serve only compliant overseas markets, customer conditions, registration review, counterparty approval and promotion channels should be consistent with one another; where traffic that does not meet the conditions is identified, there should be refusal and review mechanisms, rather than guiding customers to package their information.
Recommended actions
- List clearly the actual entities providing the coin purchase, conversion, deposit, settlement and bank card services.
- Review mainland clients, marketing, traffic referral and assistance processes under Yinfa [2026] No. 42.
- Verify the actual service recipients and product conditions; do not treat an overseas mobile phone number or address as sufficient proof.
- Review agency, commission rebate, community and customer service scripts, and confirm the business boundaries before conducting marketing.
This content is for general information only and does not constitute legal advice. Please consult a qualified lawyer about specific matters.
References
- Notice on Further Preventing and Addressing Risks Relating to Virtual Currencies and Other Matters, Yinfa [2026] No. 42 — Eight departments including the People's Bank of China / official website of the China Securities Regulatory Commission
