China’s PBOC Reaffirms Crypto Ban Amid Regulatory Coalition

China’s securities regulator Wu Qing emphasized blockchain and AI in capital markets but has not issued fresh warnings on crypto assets, while PBOC emphasizes caution on virtual assets.

Wu Qing’s focus on technology reflects a strategic alignment, whereas the PBOC’s stance on crypto highlights ongoing regulatory concerns, impacting the legality of virtual assets in China.

In November 2025, the People’s Bank of China, alongside other agencies, restated the illegal status of virtual assets in China amid renewed regulatory efforts.

The reaffirmation continues China’s stance on prohibiting virtual asset dealings, influencing market strategies and regulatory compliance expectations globally.

China Reiterates Virtual Assets Ban with New Warning

The People’s Bank of China has issued a renewed warning regarding the illegality of virtual assets within its borders, reiterating longstanding policies against crypto trading.

Speeches from top regulators do not personally include Wu Qing but reflect a collective governmental stance that stablecoins, including USDT and USDC, pose significant speculative risks.

China’s Crypto Ban Impact on Global Markets

The reaffirmed stance affects both domestic and global crypto markets by emphasizing strict legal prohibitions, potentially increasing compliance pressures overseas. These regulatory actions highlight China’s focus on reducing financial risks associated with cryptocurrency speculation, impacting investment flows and operational strategies in crypto-centric enterprises.

The PBOC issued a statement that “Virtual assets, including stablecoins, have no legal status and cannot be used as money. Any related trading activities are considered illegal financial activity.”

Repetitive Crypto Crackdowns in China Since 2021

China’s reiterated crypto bans resemble past actions from September 2021, where comprehensive trading prohibitions were introduced, maintaining a consistent approach on virtual assets.

Experts predict continued scrutiny over crypto transactions, especially involving cross-border capital flow, with potential adjustments needed in global crypto-policy alignment.