FTX payouts in China and Macau: why Step 8 is blocked and what you can do

Are China and Macau on FTX's restricted list?

Yes. FTX's support page "General Information on Distribution Service Providers" (updated 2 October 2026) says: "As of October 1, 2026, the following jurisdictions are not eligible for distributions and creditors resident in those jurisdictions cannot select Distribution Service Providers in the FTX Customer Portal." China and Macau are two of the 44 jurisdictions on that list. FTX adds: "The FTX Debtors are continuing to assess eligible jurisdictions."

In practice, Step 8 of the portal offers no provider to a resident of mainland China or Macau. Keep your KYC and the tax form (Step 7) complete, so nothing else holds the claim back if a route opens.

In July 2025, the FTX Recovery Trust asked the court for special procedures for 49 "potentially restricted foreign jurisdictions" (D.I. 31148). The motion said:

• these jurisdictions represented about 5% of the projected total value of potentially allowed claims;
• 82% of the value of affected asserted claims were in China;
• distributions in a jurisdiction that stayed restricted would be forfeited and revert to the Trust.

More than 300 creditors in China objected. They argued that there was no factual or legal basis for designating China as restricted (The Block, 10 July and 3 November 2025). The Trust withdrew the motion without prejudice on 3 November 2025 (D.I. 33439), so it can be filed again.

And in the Bahamas (PwC) process?

China and Macau are restricted there too. PwC's page "Potentially Restricted Foreign Jurisdictions" for FTX Digital Markets (last modified 15 October 2026) lists 46 jurisdictions: FTX's 44 plus Pakistan and Zimbabwe. Hong Kong and Taiwan are not on it. PwC says it is "unable to provide any details on timelines or likely outcomes at this stage".

Why payouts to China are blocked

FTX publishes no reasons for any country on its list. What is on record:

• None of FTX's three distribution service providers can be selected by a resident of mainland China or Macau in the portal.
• In its 2025 motion, the Trust said that rules in the listed jurisdictions "generally prohibit a person or entity from engaging in any activity related to digital assets". It warned that distributions there "may trigger fines and penalties, including personal liability for directors and officers". As an example, it cited a warning by the Monetary Authority of Macao.
• In 2026, China made its rules stricter. On 6 February 2026, the People's Bank of China and seven other agencies issued a new notice (Yinfa [2026] No. 42) that replaced the 2021 notice. It says that virtual currency business activities are illegal financial activities. It also says that overseas entities and individuals may not illegally provide virtual-currency services to people in China "in any form".

Our reading:

• For China, the obstacle is Chinese law on crypto services, and in 2026 that law became stricter, not looser.
• China is therefore one of the hardest jurisdictions to come off the list.
• We would plan around January 2027 rather than wait for a change.

What happens if you do nothing

• Deferral. FTX: "If a Distribution Service Provider is unable to service your jurisdiction, your distribution will be deferred to a later date."
• The six-month rule.
• FTX's Distributions Dashboard FAQ (updated 13 September 2026) says a holder of an allowed claim who does not complete onboarding with a provider within six months from the 31 July 2026 distribution date may forfeit their right to receive distributions on that claim.
• Six months from that date is about 31 January 2027. That is our calculation; your own FTX notice gives the date that applies to you.
• FTX has not said how this rule applies when a jurisdiction is blocked.

FTX Step 8 deadline

• Step 7. The tax form must be completed within 90 days of FTX's first notice after each record date. Otherwise that distribution is permanently forfeited.
• No court route today. The 2025 motion was withdrawn and can be filed again. If it is, the forfeiture it proposed could come back.

Your options

1. Wait.

• Keep KYC and Step 7 complete, and check Step 8 every month.
• On the W-8BEN form in Step 7, if you use a Chinese Resident Identity Card, your foreign tax identifying number is the 18-digit ID number (OECD).
• Waiting costs nothing and can suit small claims.
• The risk is the six-month rule around January 2027.

2. Update your residence, if you now genuinely live outside mainland China and Macau.

• Hong Kong, Taiwan, Singapore and most other places are not on FTX's list.
• FTX looks at your place of residence, not your passport. If you genuinely live in a place that is not on the list, and your KYC shows it, the restriction for China does not apply to you.
• FTX: "Email KYC-Support@ftx.com to request an update to your jurisdiction information"; "the FTX Recovery Trust will evaluate and update your jurisdiction as appropriate."
• Be ready to show proof of your address there, such as a residence permit or visa and a recent utility bill or lease. Then submit a new tax form in Step 7 and select a provider.
• The provider's country must match your KYC country, and the provider runs its own checks. A temporary or borrowed address will fail them.

3. Sell the claim to Paxtibi.

• We buy the claim and file the transfer with the US court under Bankruptcy Rule 3001(e).
• You are paid at signing.
• After the 21-day notice period, future distributions go to us.

4. Payment processing.

• If you want to keep the value of future distributions, you transfer the claim to Paxtibi under a written agreement.
• When FTX pays, we forward the funds to you.
• We charge a success fee on the recovered amount. If FTX does not pay, we earn nothing.

You choose between options 3 and 4. We explain both before you decide.

What not to do:

• pay anyone who promises to "unblock" your country;
• share your FTX portal login, seed phrases or private keys;
• use someone else's address or documents for KYC.

All 44 restricted jurisdictions: see FTX restricted jurisdictions 2026.

Rules in mainland China and Macau to know

General information, not legal or tax advice.

1. Crypto business is illegal in mainland China.

• Notice Yinfa [2026] No. 42 of 6 February 2026 was issued by the People's Bank of China, the NDRC, MIIT, the Ministry of Public Security, SAMR, the NFRA, the CSRC and SAFE.
• It says that virtual currency business activities are illegal financial activities.
• It replaced the 2021 notice (Yinfa [2021] No. 237).

2. Overseas providers may not serve people in China. The notice says overseas entities and individuals may not illegally provide virtual-currency services to people in China "in any form".

3. Such contracts may be void. Under the same notice, where investing in virtual currency goes against public order and good morals, the related civil acts are void and the investor bears the losses.

4. Tax on worldwide income.

• Under the Individual Income Tax Law, resident individuals pay income tax on income from inside and outside China.
• Income from transferring property is taxed at 20%.
• Income from abroad is declared between 1 March and 30 June of the following year.
• In early 2026, tax authorities sent text messages and made calls reminding people to declare overseas income (China News Service, 19 January 2026).

5. Converting foreign currency. An individual converting foreign currency into yuan has an annual facilitation quota of USD 50,000 equivalent (SAFE).

6. Macau.

• The Monetary Authority of Macao said in 2014 that Bitcoin is "neither a legal tender nor a financial instrument subject to supervision".
• In 2017 it reminded banks and payment institutions in Macau not to provide, directly or indirectly, any financial services for these activities (Macao Government Information Bureau, 27 September 2017).

7. An FTX claim is not a token. It is a claim in a US bankruptcy case, valued in US dollars. Ask a tax adviser whether money from selling it counts as income from transferring property in your case.

FAQ

Can residents of mainland China receive FTX distributions in 2026?

Not directly. As of 1 October 2026, China and Macau are on FTX's list of jurisdictions that are not eligible for distributions, so Step 8 of the portal offers no provider. The claim itself remains; FTX says the distribution is deferred.

Is Hong Kong restricted?

No. Hong Kong is not on FTX's list, and neither is Taiwan. FTX looks at your place of residence in KYC, not your passport. If you genuinely live in Hong Kong and your KYC shows it, the restriction for China does not apply to you. The provider still runs its own checks.

What is the deadline for FTX creditors in China?

FTX's FAQ says a holder who does not complete Step 8 within six months from the 31 July 2026 distribution date may forfeit their right to receive distributions on the claim. That is about 31 January 2027. FTX has not said how this applies when a jurisdiction is blocked.

Did creditors in China challenge the restriction?

Yes. More than 300 creditors in China objected to the FTX Recovery Trust's July 2025 motion on restricted jurisdictions. The Trust withdrew the motion on 3 November 2025, without prejudice. China is still on FTX's list as of 1 October 2026.

Can I sell an FTX claim from mainland China or Macau?

Yes. Paxtibi buys FTX claims, and the transfer is filed with the US court under Bankruptcy Rule 3001(e). You are paid at signing. If you prefer to keep the value of future distributions, payment processing is the alternative.

Sources

• FTX, General Information on Distribution Service Providers (updated 2 October 2026)
• FTX, Distributions Dashboard FAQs (updated 13 September 2026)
• PwC, Potentially Restricted Foreign Jurisdictions, FTX Digital Markets (modified 15 October 2026)
• FTX Recovery Trust motion on potentially restricted foreign jurisdictions (D.I. 31148, 2 July 2025)
• Exhibit B to that motion, list of 49 jurisdictions
• Notice of withdrawal (D.I. 33439, 3 November 2025)
• The Block, "Chinese creditors push back against FTX's motion to forfeit payouts in restricted jurisdictions" (10 July 2025)
• The Block, "FTX withdraws motion seeking to limit repayments in China, Russia and other restricted jurisdictions" (3 November 2025)
• CSRC (text of notice Yinfa [2026] No. 42, 6 February 2026)
• State Taxation Administration, Individual Income Tax Law of the PRC
• China News Service, declaring overseas income (19 January 2026)
• SAFE, reply on individual foreign-exchange settlement quota
• OECD, Tax identification numbers: China
• Macao Government Information Bureau, Monetary Authority of Macao on virtual commodities and tokens (27 September 2017)

This page is general information, not legal or tax advice. Paxtibi buys FTX claims and offers payment processing, so we have a commercial interest in the options described.