China’s Stance on Cryptocurrencies Remains Unchanged
The People’s Bank of China has once again made its position on cryptocurrencies perfectly clear at a recent coordination meeting held on November 28, 2025. The central bank reiterated that all cryptocurrency activities remain prohibited in the country, maintaining the strict stance that has been in place for years.
What strikes me about this announcement is how comprehensive the attendance was. Representatives from nearly every major financial and regulatory body were present – from the Ministry of Public Security to the Cyberspace Administration, and from the Supreme People’s Court to multiple financial regulatory agencies. This suggests a coordinated, multi-agency approach to enforcement that leaves little room for ambiguity.
The Legal Status of Cryptocurrencies in China
The PBOC’s statement was quite direct about the legal standing of cryptocurrencies. They emphasized that these digital assets don’t have the same legal status as traditional fiat currency and cannot be used as money in markets. All crypto-related activities are considered illicit financial operations.
What I find particularly interesting is their position on stablecoins. The bank classified them as virtual assets too, pointing out that they currently fail to meet proper customer verification and anti-money laundering requirements. This creates what they see as serious risks including money laundering, fraudulent fundraising, and illegal cross-border money transfers.
Recent Market Developments and Enforcement
Officials noted that cryptocurrency speculation has been increasing again recently, leading to more frequent illegal activities. They acknowledged that the comprehensive regulations published back in 2021 had achieved significant results in curbing crypto trading and speculation, but new market dynamics have apparently caused risks to rise once more.
This pattern makes me wonder about the cyclical nature of crypto enforcement. When regulations tighten, activity goes underground or becomes more sophisticated, then authorities have to adapt their approach. It’s like a constant game of cat and mouse between regulators and market participants.
Future Enforcement and Monitoring
The PBOC described preventing and controlling financial risks as a “permanent duty,” which suggests they see this as an ongoing battle rather than something that can be solved with a single regulatory action. They’ve called on all institutions to establish stronger monitoring mechanisms, particularly focusing on information and fund flows.
Increased information sharing between agencies and improved oversight frameworks appear to be key priorities. The language about taking “strong measures” against illegal activities indicates that enforcement actions will likely continue and perhaps even intensify in the coming months.
What’s clear from this announcement is that China’s position on cryptocurrencies isn’t softening despite global trends in other countries. The coordinated approach across multiple government agencies suggests they’re serious about maintaining control over financial flows and preventing what they see as systemic risks to their financial system.
I think this also reflects broader concerns about capital flight and maintaining the stability of China’s financial markets. While other countries are experimenting with crypto regulation and integration, China seems committed to its prohibition-first approach, at least for the foreseeable future.
