Multiple departments in China have joined forces! The regulation of Virtual Money continues to be under high pressure, beware of short-term market risks!

A meeting led by the People's Bank of China, with participation from more than ten core departments, once again clarified China's tough stance on Virtual Money trading.

Recently, speculation in the virtual money market has risen, and related risk prevention and control face new situations and challenges. In response to this situation, on November 28, 2025, the People's Bank of China convened a coordination meeting to combat virtual money trading speculation.

Officials from more than ten departments including the Ministry of Public Security, the Central Internet Information Office, the Supreme People's Court, the Supreme People's Procuratorate, the State Administration for Market Regulation, and the China Securities Regulatory Commission jointly attended, demonstrating the regulatory authorities' high attention to the risk prevention and control of Virtual Money.

01 Regulatory Collaboration Upgrade

This meeting is not the first time that Chinese regulatory authorities have expressed a tough stance on Virtual Money, but the wide range of departments involved in the coordination mechanism is值得关注.

In addition to the People's Bank of China, responsible comrades from more than ten departments, including the Ministry of Public Security, the Cyberspace Administration of China, the Supreme People's Court, the Supreme People's Procuratorate, the State Administration for Market Regulation, and the China Securities Regulatory Commission, attended the meeting.

This multi-departmental collaborative regulatory model reflects China's high regard for the risk prevention and control of Virtual Money and marks a tighter regulatory network against illegal financial activities related to Virtual Money.

The meeting pointed out that recently, speculation and hype surrounding virtual money has risen, and related illegal activities have occurred from time to time, presenting new situations and challenges for risk prevention and control.

02 The policy stance is consistent.

The meeting reaffirmed our country's consistent and explicit prohibitive policy towards Virtual Money. Virtual Money does not have the same legal status as legal tender, does not have legal compensation, and should not and cannot be circulated and used as currency in the market.

All activities related to Virtual Money are considered illegal financial activities. This policy stance is a continuation and deepening of the spirit of the "Notice on Further Preventing and Dealing with Risks of Virtual Money Trading Speculation" issued by the People's Bank of China and ten other departments in 2021.

Regarding stablecoins, the conference clearly pointed out that stablecoins are a form of Virtual Money, which currently cannot effectively meet the requirements for customer identity verification, 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 fund transfers.

03 Comprehensive Deepening of Prevention and Control Measures

The meeting requires all relevant units to deepen collaboration, improve regulatory policies and legal bases, focus on key areas such as information flow and capital flow, enhance information sharing, and further improve monitoring capabilities.

This means that future regulation will pay more attention to the combination of technical means and legal means, focusing on two key dimensions: the dissemination of transaction information and the flow of funds, to precisely crack down on illegal activities related to Virtual Money.

The conference emphasized that risk prevention should be the eternal theme of financial work, continuing to adhere to the prohibitive policy on Virtual Money, persistently cracking down on illegal financial activities related to Virtual Money, and protecting the property security of the people.

The joint action of the central bank and fourteen other ministries has built a comprehensive monitoring network that covers information flow and capital flow, clearly expressing China's policy expectation that the high-pressure regulation of Virtual Money will continue.

For investors, this means that the compliance risks of virtual money trading have further increased, and any attempts to circumvent regulations for the purpose of speculative trading in virtual money will face increasingly high legal risks.