China Strengthens Coordination in Combating Speculation in Crypto and Stablecoins

The People's Bank of China convened key financial and law enforcement agencies for a meeting: China is strengthening coordination in combating speculation in crypto and stablecoins.

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More About the Objectives and Decisions of the Meeting

On November 28, 2025, the People's Bank of China held a meeting of the coordination mechanism for combating speculation in transactions involving virtual currencies, bringing together the Ministry of Public Security, the Cyberspace Administration of China, the Central Financial Administration, the Supreme People's Court and the Supreme People's Procuratorate, the National Development and Reform Commission, relevant ministries, the financial markets regulator, the China Securities Regulatory Commission and the foreign exchange control administration at the same table.

Participants at the meeting recalled that since 2021, the agencies have been implementing a joint notice on preventing risks associated with virtual currencies and have been strictly clamping down on related activities. Regulators described the effect achieved as restoring order to the market, while at the same time pointing to a renewed rise in speculation and a related wave of illegal and criminal activity in the virtual currency sector.

The regulators once again reaffirmed their position on the legal status of such instruments. They stated explicitly that virtual currencies don't have the status of legal tender, aren't subject to mandatory acceptance, and cannot serve as currency in circulation. Accordingly, any business that structures its operations around virtual currencies falls into the category of illegal financial activity. At the same time, stablecoins were given separate attention: the authorities believe that such tokens currently do not provide sufficient customer identification, anti-money laundering controls, and other compliance requirements, and therefore see a high risk of their use for money laundering, fraud, and illegal cross-border capital movements.

As a result, the People's Bank of China and other agencies called for adherence to the policy line of the Communist Party of China leadership, treating the prevention of financial risks as a permanent priority and maintaining a complete ban on transactions involving virtual currencies. At the same time, the coordination mechanism aims to foster closer interaction between agencies: regulators are stepping up information sharing, paying more attention to data and capital flows, and expanding tools for monitoring and joint response. The authorities also pledge to take a hard line against illegal and criminal schemes involving virtual currencies, protect citizens' property rights, and support the stability of the financial system and the economy as a whole.

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Conclusion

China's crypto environment remains far from favorable, and given the large-scale and consolidated position of key stakeholders, it seems unlikely that the situation will change in the near term. At the same time, the crypto industry is developing at an unprecedented pace. It is increasingly being anchored in favorable regulatory frameworks, which in the long run may become a strategic advantage for them. All this is particularly noteworthy against the backdrop of intense competition between the United States and China, where one would expect each side to seize on any potential advantage in this race, yet in the crypto sphere, they are moving in fundamentally opposite directions. Let's see what results each strategy will bring. Get more insights from our guides for beginners and professionals, and stay tuned for the latest updates and opportunities in the new economy, crypto industry, and blockchain developments!