Many sectors of China are taking action! Regulations on virtual currency continue to apply high pressure, be careful with short term market risks!

A meeting chaired by the People's Bank of China, with the participation of more than ten core ministries, has once again clarified China's hardline stance on cryptocurrency transactions.
Recently, speculative activities in the cryptocurrency market have increased, and the management of related risks is facing new situations and challenges. To respond to this situation, on November 28, 2025, the People's Bank of China hosted a coordination meeting to combat cryptocurrency trading and speculation.
The responsible comrades from more than ten agencies, such as the Ministry of Public Security, the Central Office for Network Information, the Supreme People's Court, the Supreme People's Procuratorate, the General Administration of Market Supervision, and the China Securities Regulatory Commission, attended, demonstrating the high importance that regulatory agencies place on the prevention of cryptocurrency risks.
01 Upgrade Coordination Monitoring
This meeting is not the first time that Chinese regulators have expressed a tough stance on cryptocurrencies, but the coordination mechanism related to the scope of various ministries is noteworthy.
In addition to the People's Bank of China, colleagues in charge from more than ten agencies such as the Ministry of Public Security, the Central Office for Network Information, the Supreme People's Court, the Supreme People's Procuratorate, the National Market Regulation Administration, and the China Securities Regulatory Commission attended the conference.
This multi-departmental collaborative monitoring model reflects China's high emphasis on the prevention and control of cryptocurrency risks, while also marking an increasingly stringent network of supervision aimed at suppressing illegal financial activities related to cryptocurrencies.
The conference pointed out that recently, activities related to cryptocurrency speculation have been on the rise, and illegal activities related to it often occur, while risk prevention efforts are facing new situations and challenges.
02 Consistent Policy of Upholding a Firm Stance
The conference emphasized our country's clear and consistent policy of banning virtual currency. Virtual currency does not have a legal status equivalent to that of legal tender, does not have the ability to make payments according to the law, and should not and cannot be used as currency for circulation in the market.
All business activities related to virtual currencies fall under illegal financial activities. This policy perspective is a continuation and deepening of the spirit of the "Notice on Continuing to Prevent and Handle Risks from Virtual Currency Transactions and Speculation" issued by the People's Bank of China and ten other agencies in 2021.
Regarding stablecoins, the conference clearly stated that stablecoins are a form of virtual currency, which currently cannot effectively meet the requirements for customer identification, anti-money laundering, and other aspects.
There is a risk of being used for illegal activities such as money laundering, fundraising fraud, and illegal cross-border money transfers.
03 Comprehensive preventive and control measures are strengthened
The meeting requires relevant units to strengthen coordination,完善 management policies and legal basis, focusing on key areas such as information flow, capital flow, enhancing information sharing, and improving supervision capabilities.
This means that in the future, management will focus more on integrating technical and legal methods, from two important aspects: the transmission of transaction information and the direction of cash flow, aimed precisely at illegal activities related to virtual currency.
The meeting emphasized considering risk prevention as a permanent theme of financial work, continuing to maintain the ban on cryptocurrencies, continuously cracking down on illegal financial activities related to cryptocurrencies, and protecting the safety of citizens' assets.
The joint attack of the central bank and fourteen ministries has built a comprehensive monitoring network covering information and cash flow, clearly reflecting China's policy forecast to continue maintaining high pressure in managing virtual currencies.
For investors, this means that compliance risks in cryptocurrency trading are increasing, and any actions attempting to circumvent the law for trading and speculating in cryptocurrencies will face ever-increasing legal risks.