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China has once again tightened its crackdown on crypto after a major meeting on November 28, 2025. The People’s Bank of China (PBOC) clearly stated that virtual assets, including stablecoins, have no legal status and cannot be used as money. With crypto activity rising again, officials are warning about illegal trading, scams, and money moving secretly across borders.
China Holds High-Level Meeting to Combat Crypto Speculation
On November 28, China’s central bank hosted a large coordination meeting with the top ten major government bodies
Chinese officials said that crypto speculation is rising once more, mainly driven by global price jumps and hype spreading fast on social platforms.
With this comeback, regulators have noticed several warning signs, like new illegal fundraising activities, cross-border crypto money transfers, and more fraud cases linked to stablecoins.
Authorities also reported that many users are secretly bypassing capital controls through digital assets. Because of these growing risks, China believes strong action is needed before the situation becomes harder to handle.
PBOC Repeats: Virtual Assets Are Illegal Financial Activity
According to officials, while earlier crackdowns since 2021 were “effective,” crypto trading and speculation have recently resurfaced due to rising global prices and new market trends.
- Virtual assets are not legal currency and cannot be used in the market.
- Any business involving crypto trading is an illegal financial activity.
Stablecoins Under Deep Scrutiny
A major focus of the meeting was stablecoins, which PBOC officials called just another form of virtual asset that fails to meet KYC or anti-money-laundering standards.
Officials warned that stablecoins in particular can be easily misused for underground payments, fraud, and illegal cross-border transfers. The message was clear, crypto will remain strictly prohibited in the mainland.
China’s Key Plans To Combat This
China told all departments to keep blocking access to crypto trading channels and improve monitoring of both data and money movements.
Authorities will boost information-sharing across agencies so they can quickly act against illegal crypto activity and protect citizens from scams. The main goal remains unchanged, to avoid financial instability.
Officials said crypto risks are a “long-term challenge,” and the only way forward is continued strict enforcement.