- China’s PBOC reaffirms crypto ban, targets stablecoins and illegal trading.
- Intensified regulatory enforcement announced.
- Focus on cross-border disruption and fraud prevention.
On November 28, 2025, China’s central bank reinforced its stance that virtual assets, including stablecoins, hold no legal status in the country during a high-level meeting in Beijing.
This decision aims to further crack down on illegal cryptocurrency activities, impacting market dynamics and signaling continued stringent regulatory measures against virtual assets in China.
China’s Intensified Crypto Ban
Regulatory Reinforcement
On November 28, 2025, the People’s Bank of China (PBOC) led a significant meeting reiterating that virtual assets, including stablecoins, lack legal status in China, reinforcing their prohibition as currency. The session included high-level coordination with various government bodies.
“Virtual assets, including stablecoins, have no legal status in China and cannot be used as currency” – People’s Bank of China (PBOC)
Key participants comprised the PBOC and agencies such as the Ministry of Public Security and the Cyberspace Administration. The meeting reinforced stringent measures against illegal fundraising and cross-border crypto transfers, highlighting stablecoins for their compliance issues.
Impact on Crypto Markets
The immediate outcome indicated an intensified crackdown on crypto trading channels, impacting anti-money laundering efforts. Metrics may signify downtrends in onshore DeFi activities and liquidity, owing to reduced trading and stricter enforcement measures. While stablecoin risks were particularly underscored, broader crypto assets like Bitcoin and Ethereum were implicitly affected. The move aligns with China’s continuous agenda to curb illegal crypto activities, trading, and speculative behaviors.
Global Implications
High-profile crypto leaders have not commented on the recent regulatory stance. The PBOC’s consistent message may steer international market sentiment, potentially dampening engagement within Chinese crypto projects. The PBOC’s decision may lead to long-term financial retraction from Chinese markets. Historical patterns suggest further cryptocurrency outflows. Potential shifts in global crypto landscapes are conceivable, with past crackdowns reflecting decreased miner activities and exchange closures.
