Foreign exchange companies are not illegal. Foreign exchange refers to the means of payment and assets expressed in foreign currency that can be used for international settlement, including foreign currency cash, bills, bank certificates of deposit, bonds and stocks. Financial institutions engaged in foreign exchange business shall open foreign exchange accounts for customers in accordance with the provisions of the foreign exchange administration department of the State Council.

legal ground

Article 3 of the Regulations of People's Republic of China (PRC) Municipality on Foreign Exchange Control

"Foreign exchange" as mentioned in these Regulations refers to the following means of payment and assets expressed in foreign currencies that can be used for international settlement:

(a) Cash in foreign currencies, including banknotes and coins;

(2) Foreign currency payment vouchers or payment instruments, including bills, bank deposit vouchers, bank cards, etc. ;

Foreign currency securities, including bonds and stocks;

(4) Special drawing rights;

(5) Other foreign exchange assets.

Article 4

These Regulations shall apply to the foreign exchange receipts and payments or foreign exchange business activities of domestic institutions and individuals, as well as the foreign exchange receipts and payments or foreign exchange business activities of overseas institutions and individuals in China.