- PBOC held a meeting on November 28 with 13 government departments on crypto policy.
- China reaffirmed its 2021 position that virtual currencies lack legal tender status.
- Stablecoins cited as risk for money laundering and illegal fund transfer activity.
The People’s Bank of China convened a meeting of the coordination mechanism for combating virtual currency trading speculation on November 28, 2025. Officials from 13 government departments attended, including the Ministry of Public Security, the Cyberspace Administration of China, and the Supreme People’s Court.
The meeting addressed recent increases in cryptocurrency speculation activity and related illegal operations. Officials stated that virtual currency trading has resurfaced despite enforcement efforts, creating new challenges for risk prevention and control.
Stablecoins Targeted as Illegal Activity Rise
PBOC officials emphasized that virtual currencies do not hold the same legal status as fiat currencies. The bank stated that these assets lack legal tender status and cannot be used as currency in market transactions. Virtual currency-related business activities constitute illegal financial activities under Chinese law.
The meeting specifically addressed stablecoins as a form of virtual currency. Officials stated that stablecoins currently fail to meet customer identification and anti-money laundering requirements. The bank cited risks including money laundering, fundraising fraud, and illegal cross-border fund transfers.
China Maintains Prohibitive Crypto Stance Since 2021
Chinese authorities have maintained a prohibitive stance on cryptocurrency since 2021, when the PBOC and 10 other departments issued a joint notice to prevent risks from virtual currency trading. The November meeting reaffirmed this policy framework and outlined enforcement priorities.
Officials instructed all units to treat risk prevention and control as the perpetual theme of financial work. The coordination mechanism will continue to crack down on illegal financial activities related to virtual currencies. Departments were directed to deepen cooperation and improve regulatory policies and legal frameworks.
The meeting shared specific enforcement focus areas, including information flow and capital flow monitoring. Authorities plan to strengthen information sharing between departments and enhance monitoring capabilities. The PBOC stated that agencies will severely crack down on illegal and criminal activities to protect citizens’ property and maintain economic and financial order.
Related: https://coinedition.com/uzbekistan-legalizes-stablecoins-for-payments-beginning-january-2026/
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Source: https://coinedition.com/chinas-pboc-reaffirms-crackdown-on-crypto-trading-and-illegal-stablecoin-usage/
