Key Points
- •CSRC Chair Wu Qing urges cautious handling of crypto assets amid risk concerns.
- •Wu Qing emphasizes understanding and control of crypto-related businesses.
- •Strict scrutiny on margin financing, derivatives, and private asset management.
Regulatory Stance on Crypto Assets
At the China Securities Association conference, Wu Qing, the CSRC chairman, emphasized the need for rigorous risk management of crypto assets. He urged caution against developing unfamiliar and uncontrollable crypto business models. The CSRC's stance signifies continued restriction on crypto activities by regulated Chinese entities, impacting domestic institutional participation in the global cryptocurrency market.
Wu Qing, Chairman of the CSRC, highlighted concerns around the handling of crypto assets in his address to the China Securities Association. He emphasized the need for comprehensive risk prevention in sectors such as margin financing, securities lending, and derivatives. His stance indicates ongoing scrutiny of crypto-related activities in China, stressing thorough analysis.
The immediate impact includes a reinforced regulatory climate discouraging uncontrolled crypto activities within China's financial markets. The CSRC's emphasis on preventing illegal activities aligns with the broader narrative of risk aversion in the sector. Institutions are urged to engage only in comprehensible business ventures.
Wu Qing, Chairman and Party Secretary, China Securities Regulatory Commission (CSRC), "advocated for thorough analysis and cautious handling of crypto assets; businesses which cannot be clearly understood and controlled should not be developed, and illegal activities must be resolutely avoided."
Bitcoin's Market Position Amid Regulatory Pressures
Wu Qing's cautionary approach to crypto is consistent with China's historical regulatory stance, reminiscent of previous crackdowns on ICOs and crypto exchanges aimed at mitigating financial risk.
As of December 6, 2025, Bitcoin (BTC) is priced at $89,319.80 with a market cap of $1.78 trillion, representing a 58.69% dominance in the crypto market. The cryptocurrency has seen notable fluctuations, with a 3.04% decline over the past 24 hours and a larger 27.92% drop over 60 days, as per CoinMarketCap data. Trading volume over the last 24 hours reached $61.13 billion. The current circulating supply stands at 19,958,221 BTC out of a maximum possible supply of 21 million.
Coincu's research team notes potential regulatory pressures may maintain dampened enthusiasm for crypto assets within China. Historical reluctance towards digital currencies continues, pointing to limited institutional advancements unless regulatory landscapes shift towards greater clarity and control.